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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Equinor and Ameresco are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that EQNR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
EQNR currently has a forward P/E ratio of 9.12, while AMRC has a forward P/E of 52.10. We also note that EQNR has a PEG ratio of 0.18. 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. AMRC currently has a PEG ratio of 2.78.
Another notable valuation metric for EQNR is its P/B ratio of 2.48. 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 5.32.
These metrics, and several others, help EQNR earn a Value grade of B, while AMRC has been given a Value grade of F.
EQNR stands above AMRC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EQNR is the superior value 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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