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EQNR or AMRC: Which Is the Better Value Stock Right Now?

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Zacks Equity Research
·2 min read
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Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Equinor (EQNR) or Ameresco (AMRC). But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Equinor has a Zacks Rank of #2 (Buy), while Ameresco 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 EQNR is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

EQNR currently has a forward P/E ratio of 11.39, while AMRC has a forward P/E of 41.59. We also note that EQNR has a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMRC currently has a PEG ratio of 2.38.

Another notable valuation metric for EQNR is its P/B ratio of 1.86. 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, AMRC has a P/B of 4.85.

These metrics, and several others, help EQNR earn a Value grade of A, while AMRC has been given a Value grade of D.

EQNR sticks out from AMRC in both our Zacks Rank and Style Scores models, so value investors will likely feel that EQNR is the better option right now.


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Equinor ASA (EQNR) : Free Stock Analysis Report
 
Ameresco, Inc. (AMRC) : Free Stock Analysis Report
 
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