MGE Energy, Ball Corp.: Top 5 Value Stocks

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BOSTON (TheStreet) -- The following companies have annual revenue above $500 million, below-average valuations, debt that is less than 49% of total capital and receive "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. They're ordered by their potential to appreciate, starting with the company with the best growth prospects.

Church & Dwight(CHD Quote) sells household products, including Arm & Hammer Baking Soda and Brillo Pads.

The numbers: Second-quarter net income increased 27% to $58 million and earnings per share climbed 23% to 88 cents, restrained by a higher share count, as revenue jumped 5% to $623 million. The operating margin ascended from 14% to 16% and the net margin advanced past 9%. A quick ratio of 1.2 demonstrates ample liquidity and a debt-to-equity ratio of 0.5 indicates conservative leverage.

The stock: Church & Dwight is up 2% in 2009, underperforming the Dow Jones Industrial Average and S&P 500 Index. The stock trades at an expensive price-to-earnings ratio of 19 and offers a dividend yield below 1%. The company's record of consistent earnings growth regardless of economic conditions makes it an attractive stock.

MGE Energy(MGEE Quote) is a Wisconsin-based electric utility.

The numbers: Second-quarter net income dropped 6% to $10 million and earnings per share fell 10% to 43 cents, hurt by a higher share count, as revenue decreased 14% to $108 million. The operating margin rose from 15% to 16% and the net margin increased from 8% to 9%. A quick ratio of 0.3 and just $12 million of cash demonstrate weak liquidity. But a debt-to-equity ratio of 0.7 indicates reasonable leverage and is lower than the industry average.