TGS or WMB: Which Is the Better Value Stock Right Now?

Core Viewpoint - The comparison between Transportadora De Gas Sa Ord B (TGS) and Williams Companies, Inc. (WMB) indicates that TGS is currently a more attractive option for value investors due to its stronger earnings outlook and better valuation metrics [1][3]. Group 1: Zacks Rank and Earnings Outlook - TGS has a Zacks Rank of 2 (Buy), while WMB has a Zacks Rank of 4 (Sell), suggesting that TGS is likely experiencing a more favorable earnings outlook [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, which supports TGS's stronger position [3]. Group 2: Valuation Metrics - TGS has a forward P/E ratio of 12.55, significantly lower than WMB's forward P/E of 26.00, indicating that TGS may be undervalued relative to WMB [5]. - TGS's PEG ratio is 1.20, while WMB's PEG ratio is 1.40, further suggesting that TGS offers better value considering its expected earnings growth [5]. - TGS has a P/B ratio of 1.93 compared to WMB's P/B of 4.97, reinforcing TGS's superior valuation metrics [6]. - Based on these valuation figures, TGS has earned a Value grade of B, while WMB has a Value grade of D, highlighting TGS's stronger overall value proposition [6].