EIX vs. PNW: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Utility - Electric Power sector should consider Edison International (EIX) and Pinnacle West (PNW) for potential value investment opportunities [1] Group 1: Zacks Rank and Earnings Estimates - Edison International has a Zacks Rank of 2 (Buy), while Pinnacle West has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for EIX [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that EIX is likely experiencing an improvement in its earnings outlook compared to PNW [3] Group 2: Valuation Metrics - EIX has a forward P/E ratio of 9.12, significantly lower than PNW's forward P/E of 20.71, indicating that EIX may be undervalued [5] - The PEG ratio for EIX is 1.30, while PNW's PEG ratio is 9.77, further suggesting that EIX is more attractive in terms of expected earnings growth relative to its price [5] - EIX's P/B ratio is 1.23 compared to PNW's P/B of 1.63, reinforcing the notion that EIX is undervalued relative to its book value [6] - These metrics contribute to EIX's Value grade of A and PNW's Value grade of C, indicating a stronger value proposition for EIX [6]