Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of OMV AG (OMVKY) and Exxon Mobil (XOM). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 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.
Currently, OMV AG has a Zacks Rank of #2 (Buy), while Exxon Mobil has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OMVKY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
OMVKY currently has a forward P/E ratio of 8.29, while XOM has a forward P/E of 16.10. We also note that OMVKY has a PEG ratio of 1.17. 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. XOM currently has a PEG ratio of 2.56.
Another notable valuation metric for OMVKY is its P/B ratio of 0.62. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, XOM has a P/B of 1.74.
These are just a few of the metrics contributing to OMVKY's Value grade of A and XOM's Value grade of C.
OMVKY stands above XOM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OMVKY is the superior value option right now.
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OMV AG (OMVKY): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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