E or CVX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of Eni SpA (E) and Chevron (CVX). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Eni SpA and Chevron are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that E likely has seen a stronger improvement to its earnings outlook than CVX has recently. But this is just one factor that value investors are interested in.
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 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 10.61, while CVX has a forward P/E of 15.16. We also note that E has a PEG ratio of 0.78. 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 3.03.
Another notable valuation metric for E is its P/B ratio of 1.03. 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 1.57.
These are just a few of the metrics contributing to E's Value grade of B and CVX's Value grade of C.
E has seen stronger estimate revision activity and sports more attractive valuation metrics than CVX, so it seems like value investors will conclude that E is the superior 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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