IBDRY vs. POR: Which Stock Is the Better Value Option?
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Iberdrola S.A. (IBDRY) and Portland General Electric (POR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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, Iberdrola S.A. is sporting a Zacks Rank of #2 (Buy), while Portland General Electric has a Zacks Rank of #3 (Hold). This means that IBDRY'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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
IBDRY currently has a forward P/E ratio of 17.25, while POR has a forward P/E of 17.65. We also note that IBDRY has a PEG ratio of 2.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POR currently has a PEG ratio of 2.99.
Another notable valuation metric for IBDRY is its P/B ratio of 1.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, POR has a P/B of 1.47.
These metrics, and several others, help IBDRY earn a Value grade of B, while POR has been given a Value grade of C.
IBDRY has seen stronger estimate revision activity and sports more attractive valuation metrics than POR, so it seems like value investors will conclude that IBDRY is the superior option right now.
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Iberdrola S.A. (IBDRY) : Free Stock Analysis Report
Portland General Electric Company (POR) : Free Stock Analysis Report
