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KGEI vs. TLN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Kolibri Global Energy Inc. (KGEI - Free Report) and Talen Energy Corporation (TLN - Free Report) . 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Kolibri Global Energy Inc. and Talen Energy Corporation have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
KGEI currently has a forward P/E ratio of 13.56, while TLN has a forward P/E of 33.38. We also note that KGEI has a PEG ratio of 0.97. 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. TLN currently has a PEG ratio of 2.92.
Another notable valuation metric for KGEI is its P/B ratio of 1.55. 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, TLN has a P/B of 4.98.
Based on these metrics and many more, KGEI holds a Value grade of A, while TLN has a Value grade of C.
Both KGEI and TLN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KGEI is the superior value option right now.
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KGEI vs. TLN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Kolibri Global Energy Inc. (KGEI - Free Report) and Talen Energy Corporation (TLN - Free Report) . 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Kolibri Global Energy Inc. and Talen Energy Corporation have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
KGEI currently has a forward P/E ratio of 13.56, while TLN has a forward P/E of 33.38. We also note that KGEI has a PEG ratio of 0.97. 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. TLN currently has a PEG ratio of 2.92.
Another notable valuation metric for KGEI is its P/B ratio of 1.55. 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, TLN has a P/B of 4.98.
Based on these metrics and many more, KGEI holds a Value grade of A, while TLN has a Value grade of C.
Both KGEI and TLN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KGEI is the superior value option right now.