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REPYY vs. FUPBY: Which Stock Should Value Investors Buy Now?

Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Repsol SA (REPYY) 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Repsol SA is sporting a Zacks Rank of #1 (Strong Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that REPYY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

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Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

REPYY currently has a forward P/E ratio of 3.49, while FUPBY has a forward P/E of 19.51. We also note that REPYY has a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FUPBY currently has a PEG ratio of 1.77.

Another notable valuation metric for REPYY is its P/B ratio of 0.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FUPBY has a P/B of 2.46.

These are just a few of the metrics contributing to REPYY's Value grade of A and FUPBY's Value grade of C.

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

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Repsol SA (REPYY) : Free Stock Analysis Report

Fuchs Petrolub SE Unsponsored ADR (FUPBY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research