Investors with an interest in Alternative Energy - Other stocks have likely encountered both PNM Resources (TXNM) and Bloom Energy (BE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, PNM Resources is sporting a Zacks Rank of #2 (Buy), while Bloom Energy has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TXNM likely has seen a stronger improvement to its earnings outlook than BE has recently. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

TXNM currently has a forward P/E ratio of 18.08, while BE has a forward P/E of 287.42. We also note that TXNM has a PEG ratio of 6.07. 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. BE currently has a PEG ratio of 11.50.

Another notable valuation metric for TXNM is its P/B ratio of 1.77. 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, BE has a P/B of 11.15.

Based on these metrics and many more, TXNM holds a Value grade of A, while BE has a Value grade of D.

TXNM has seen stronger estimate revision activity and sports more attractive valuation metrics than BE, so it seems like value investors will conclude that TXNM is the superior option right now.

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TXNM Energy, Inc. (TXNM) : Free Stock Analysis Report

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