Yahoo Finance CSAN vs. ORA: Which Stock Is the Better Value Option?
Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Cosan (CSAN) or Ormat Technologies (ORA). 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Cosan and Ormat Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CSAN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
CSAN currently has a forward P/E ratio of 12.46, while ORA has a forward P/E of 44.10. We also note that CSAN has a PEG ratio of 0.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ORA currently has a PEG ratio of 4.41.
Another notable valuation metric for CSAN is its P/B ratio of 0.96. 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, ORA has a P/B of 2.20.
These metrics, and several others, help CSAN earn a Value grade of B, while ORA has been given a Value grade of C.
CSAN has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that CSAN is the superior option right now.
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Cosan S.A. Sponsored ADR (CSAN) : Free Stock Analysis Report
Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report
