OGS or MDU: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors are evaluating ONE Gas (OGS) and MDU Resources (MDU) to determine which stock offers better value for investment opportunities in the Utility - Gas Distribution sector [1] Group 1: Zacks Rank and Earnings Estimates - ONE Gas has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MDU Resources has a Zacks Rank of 3 (Hold), suggesting a less favorable earnings outlook [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, making OGS a more attractive option for investors seeking growth [3] Group 2: Valuation Metrics - OGS has a forward P/E ratio of 16.33, compared to MDU's forward P/E of 19.89, indicating that OGS may be undervalued relative to MDU [5] - The PEG ratio for OGS is 2.45, while MDU's PEG ratio is 2.63, suggesting that OGS has a more favorable earnings growth outlook relative to its price [5] - OGS has a P/B ratio of 1.45, slightly lower than MDU's P/B of 1.48, further supporting the argument that OGS is a better value investment [6] Group 3: Value Grades - OGS has been assigned a Value grade of B, while MDU has a Value grade of C, indicating that OGS is perceived as a more attractive investment based on traditional valuation metrics [6]