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EXC vs. NEE: Which Stock Is the Better Value Option?
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Investors interested in Utility - Electric Power stocks are likely familiar with Exelon (EXC - Free Report) and NextEra Energy (NEE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Exelon and NextEra Energy are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
EXC currently has a forward P/E ratio of 13.53, while NEE has a forward P/E of 21.98. We also note that EXC has a PEG ratio of 2.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NEE currently has a PEG ratio of 2.55.
Another notable valuation metric for EXC is its P/B ratio of 1.23. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NEE has a P/B of 2.23.
These metrics, and several others, help EXC earn a Value grade of B, while NEE has been given a Value grade of D.
Both EXC and NEE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXC is the superior value option right now.
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EXC vs. NEE: Which Stock Is the Better Value Option?
Investors interested in Utility - Electric Power stocks are likely familiar with Exelon (EXC - Free Report) and NextEra Energy (NEE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Exelon and NextEra Energy are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
EXC currently has a forward P/E ratio of 13.53, while NEE has a forward P/E of 21.98. We also note that EXC has a PEG ratio of 2.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NEE currently has a PEG ratio of 2.55.
Another notable valuation metric for EXC is its P/B ratio of 1.23. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NEE has a P/B of 2.23.
These metrics, and several others, help EXC earn a Value grade of B, while NEE has been given a Value grade of D.
Both EXC and NEE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXC is the superior value option right now.