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VST vs. UTL: Which Stock Should Value Investors Buy Now?
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Investors interested in Utility - Electric Power stocks are likely familiar with Vistra Energy Corp. (VST - Free Report) and Unitil (UTL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Vistra Energy Corp. is sporting a Zacks Rank of #2 (Buy), while Unitil has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VST is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VST currently has a forward P/E ratio of 7.08, while UTL has a forward P/E of 20.82. We also note that VST has a PEG ratio of 0.56. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UTL currently has a PEG ratio of 4.33.
Another notable valuation metric for VST is its P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, UTL has a P/B of 1.99.
These metrics, and several others, help VST earn a Value grade of A, while UTL has been given a Value grade of D.
VST sticks out from UTL in both our Zacks Rank and Style Scores models, so value investors will likely feel that VST is the better option right now.
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VST vs. UTL: Which Stock Should Value Investors Buy Now?
Investors interested in Utility - Electric Power stocks are likely familiar with Vistra Energy Corp. (VST - Free Report) and Unitil (UTL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Vistra Energy Corp. is sporting a Zacks Rank of #2 (Buy), while Unitil has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VST is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VST currently has a forward P/E ratio of 7.08, while UTL has a forward P/E of 20.82. We also note that VST has a PEG ratio of 0.56. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UTL currently has a PEG ratio of 4.33.
Another notable valuation metric for VST is its P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, UTL has a P/B of 1.99.
These metrics, and several others, help VST earn a Value grade of A, while UTL has been given a Value grade of D.
VST sticks out from UTL in both our Zacks Rank and Style Scores models, so value investors will likely feel that VST is the better option right now.