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

Core Viewpoint - NorthWestern (NWE) is currently positioned as a more attractive investment option compared to Pinnacle West (PNW) for value investors, based on earnings estimate revisions and valuation metrics [3][7]. Valuation Metrics - NWE has a forward P/E ratio of 15.85, while PNW has a forward P/E of 19.02, indicating that NWE is relatively undervalued [5]. - The PEG ratio for NWE is 2.31, compared to PNW's PEG ratio of 8.97, suggesting that NWE offers better value when considering expected earnings growth [5]. - NWE's P/B ratio stands at 1.22, whereas PNW's P/B ratio is 1.51, further supporting NWE's valuation advantage [6]. Analyst Outlook - NWE holds a Zacks Rank of 2 (Buy), reflecting a positive earnings estimate revision activity, while PNW has a Zacks Rank of 4 (Sell), indicating a less favorable outlook [3][7]. - The Value grade for NWE is B, while PNW has a Value grade of C, reinforcing the conclusion that NWE is the superior choice for value investors [6].