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Investors interested in Alternative Energy - Other stocks are likely familiar with Excelerate Energy (EE) and GE Vernova (GEV). But which of these two stocks presents investors with the better value opportunity right now? 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, Excelerate Energy has a Zacks Rank of #2 (Buy), while GE Vernova has a Zacks Rank of #3 (Hold). This means that EE'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.
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.
EE currently has a forward P/E ratio of 20.20, while GEV has a forward P/E of 55.40. We also note that EE has a PEG ratio of 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GEV currently has a PEG ratio of 3.08.
Another notable valuation metric for EE is its P/B ratio of 1.70. 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, GEV has a P/B of 9.66.
These are just a few of the metrics contributing to EE's Value grade of A and GEV's Value grade of C.
EE has seen stronger estimate revision activity and sports more attractive valuation metrics than GEV, so it seems like value investors will conclude that EE is the superior option right now.
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Excelerate Energy, Inc. (EE) : Free Stock Analysis Report
GE Vernova Inc. (GEV) : Free Stock Analysis Report