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GPOR vs. EOG: Which Stock Is the Better Value Option?

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Investors with an interest in Oil and Gas - Exploration and Production - United States stocks have likely encountered both Gulfport Energy (GPOR - Free Report) and EOG Resources (EOG - Free Report) . 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Gulfport Energy and EOG Resources are sporting a Zacks Rank of # 2 (Buy). 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 only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

GPOR currently has a forward P/E ratio of 5.64, while EOG has a forward P/E of 18.06. We also note that GPOR has a PEG ratio of 0.42. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EOG currently has a PEG ratio of 1.17.

Another notable valuation metric for GPOR is its P/B ratio of 0.49. 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, EOG has a P/B of 3.50.

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

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


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EOG Resources, Inc. (EOG) - free report >>

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