Yahoo Finance CWEN or VWDRY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Clearway Energy (CWEN) and Vestas Wind Systems AS (VWDRY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, both Clearway Energy and Vestas Wind Systems AS are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 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.
CWEN currently has a forward P/E ratio of 20.93, while VWDRY has a forward P/E of 109.55. We also note that CWEN has a PEG ratio of 2.09. 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. VWDRY currently has a PEG ratio of 2.19.
Another notable valuation metric for CWEN is its P/B ratio of 1.53. 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, VWDRY has a P/B of 7.66.
These are just a few of the metrics contributing to CWEN's Value grade of B and VWDRY's Value grade of D.
Both CWEN and VWDRY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CWEN is the superior value option right now.
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Clearway Energy, Inc. (CWEN) : Free Stock Analysis Report
Vestas Wind Systems AS (VWDRY) : Free Stock Analysis Report
