New: Introducing “Why Is It Moving?” - lightning-fast, AI-driven explanations of stock moves

Learn More

POR vs. PNW: Which Stock Should Value Investors Buy Now?

By Zacks Equity Research | October 17, 2025, 11:40 AM

Investors interested in Utility - Electric Power stocks are likely familiar with Portland General Electric (POR) and Pinnacle West (PNW). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Portland General Electric has a Zacks Rank of #2 (Buy), while Pinnacle West has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that POR likely has seen a stronger improvement to its earnings outlook than PNW has recently. But this is just one factor that value investors are interested in.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

POR currently has a forward P/E ratio of 13.63, while PNW has a forward P/E of 20.42. We also note that POR has a PEG ratio of 4.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PNW currently has a PEG ratio of 9.63.

Another notable valuation metric for POR is its P/B ratio of 1.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PNW has a P/B of 1.63.

These metrics, and several others, help POR earn a Value grade of A, while PNW has been given a Value grade of C.

POR has seen stronger estimate revision activity and sports more attractive valuation metrics than PNW, so it seems like value investors will conclude that POR is the superior option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


 
Portland General Electric Company (POR): Free Stock Analysis Report
 
Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Latest News