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ENBL vs. EPD: Which Stock Is the Better Value Option?


Investors with an interest in Oil and Gas – Production Pipeline – MLB stocks have likely encountered both Enable Midstream Partners, LP (ENBL) and Enterprise Products Partners (EPD). But which of these two companies is the best option for those looking for undervalued stocks? Let’s take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both Enable Midstream Partners, LP and Enterprise Products Partners have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ENBL currently has a forward P/E ratio of 16.87, while EPD has a forward P/E of 17.86. We also note that ENBL has a PEG ratio of 2.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. EPD currently has a PEG ratio of 5.95.

Another notable valuation metric for ENBL is its P/B ratio of 1. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. By comparison, EPD has a P/B of 2.67.

These metrics, and several others, help ENBL earn a Value grade of B, while EPD has been given a Value grade of C.

Both ENBL and EPD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENBL is the superior value option right now.

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