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E or CVX: Which Is the Better Value Stock Right Now?

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Investors interested in Oil and Gas - Integrated - International stocks are likely familiar with Eni SpA (E) and Chevron (CVX). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Eni SpA and Chevron have a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

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.

E currently has a forward P/E ratio of 11.37, while CVX has a forward P/E of 15.41. We also note that E has a PEG ratio of 0.55. 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. CVX currently has a PEG ratio of 3.08.

Another notable valuation metric for E is its P/B ratio of 0.89. 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, CVX has a P/B of 1.47.

These metrics, and several others, help E earn a Value grade of B, while CVX has been given a Value grade of F.

Both E and CVX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that E is the superior value option right now.


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Eni SpA (E) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
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