Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of Eni SpA (E) and Fuchs Petrolub SE Unsponsored ADR (FUPBY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Eni SpA is sporting a Zacks Rank of #2 (Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that E likely has seen a stronger improvement to its earnings outlook than FUPBY has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
E currently has a forward P/E ratio of 2.90, while FUPBY has a forward P/E of 16.48. We also note that E has a PEG ratio of 0.28. 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. FUPBY currently has a PEG ratio of 1.66.
Another notable valuation metric for E is its P/B ratio of 0.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FUPBY has a P/B of 1.95.
These metrics, and several others, help E earn a Value grade of A, while FUPBY has been given a Value grade of C.
E stands above FUPBY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that E is the superior value option right now.
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Eni SpA (E) : Free Stock Analysis Report
Fuchs Petrolub SE Unsponsored ADR (FUPBY) : Free Stock Analysis Report
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