Investors interested in Utility - Electric Power stocks are likely familiar with Pinnacle West (PNW) and Centuri Holdings (CTRI). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

Currently, Pinnacle West has a Zacks Rank of #2 (Buy), while Centuri Holdings has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PNW has 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

PNW currently has a forward P/E ratio of 18.07, while CTRI has a forward P/E of 39.01. We also note that PNW has a PEG ratio of 3.24. 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. CTRI currently has a PEG ratio of 10.93.

Another notable valuation metric for PNW is its P/B ratio of 1.38. 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, CTRI has a P/B of 3.31.

These are just a few of the metrics contributing to PNW's Value grade of B and CTRI's Value grade of C.

PNW is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PNW is likely the superior value option right now.

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Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report

Centuri Holdings, Inc. (CTRI) : Free Stock Analysis Report

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