EQNR vs. AMRC: Which Stock Is the Better Value Option?
Investors with an interest in Alternative Energy - Other stocks have likely encountered both Equinor (EQNR) and Ameresco (AMRC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Equinor has a Zacks Rank of #2 (Buy), while Ameresco has a Zacks Rank of #3 (Hold) 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. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EQNR currently has a forward P/E ratio of 12.33, while AMRC has a forward P/E of 32.35. We also note that EQNR has a PEG ratio of 0.30. 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 1.85.
Another notable valuation metric for EQNR is its P/B ratio of 1.96. 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, AMRC has a P/B of 3.86.
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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