TSC Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety first" approach aims to reduce risk while achieving performance on a total return basis.

The following so-called value 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 are ordered by their potential to appreciate.

New Jersey Resources ( NJR) is an energy-services company that provides retail and wholesale energy services to customers in New Jersey and other states from the Gulf Coast to New England and Canada.

The numbers: Fiscal second-quarter revenue declined 20% to $938 million as net income and earnings per share surged 183% to $36 million and 83 cents, respectively. The debt-to-equity ratio remained low at 0.6, but a quick ratio of 0.4 indicates a weak cash position. Margins improved significantly during the quarter, with operating margin climbing past 6% and net margin jumping to 4%.

The stock: New Jersey Resources has fallen 4% in 2009, underperforming the Dow Jones Industrial Average and the S&P 500. The stock trades at a fair price-to-earnings ratio of 14 and offers an attractive 3.3% dividend yield.

Church & Dwight ( CHD) makes and markets household, personal-care and specialty products around the world.

The numbers: First-quarter revenue rose 5% to $581 million as net income increased 11% to $62 million and earnings per share climbed 9% to 88 cents, hurt by a higher share count. Operating margin improved from 17% to 20% and net margin increased from 10% to 11%. Church & Dwight has an adequate liquidity position, as reflected by a quick ratio of 1.1. And a debt-to-equity ratio of 0.6 demonstrates conservative leverage.

The stock: Church & Dwight is flat in 2009, underperforming the Dow and S&P 500. The stock trades at an expensive price-to-earnings ratio of 20 and offers a dividend yield under 1%.

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