EQNR vs. AMRC: Which Stock Is the Better Value Option?
Investors interested in Alternative Energy - Other stocks are likely familiar with Equinor (EQNR) and Ameresco (AMRC). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Equinor has a Zacks Rank of #1 (Strong Buy), while Ameresco has a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EQNR has an improving earnings outlook. But this is only part of the picture 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 8.58, while AMRC has a forward P/E of 45.27. We also note that EQNR has a PEG ratio of 0.17. 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 2.42.
Another notable valuation metric for EQNR is its P/B ratio of 2.32. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AMRC has a P/B of 4.61.
These metrics, and several others, help EQNR earn a Value grade of B, 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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