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KLYCY or VET: Which Is the Better Value Stock Right Now?

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Investors with an interest in Oil and Gas - Exploration and Production - International stocks have likely encountered both KUNLUN EGY ADR (KLYCY - Free Report) and Vermilion Energy (VET - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

KUNLUN EGY ADR has a Zacks Rank of #1 (Strong Buy), while Vermilion Energy has a Zacks Rank of #3 (Hold) right now. This means that KLYCY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

KLYCY currently has a forward P/E ratio of 9.50, while VET has a forward P/E of 25.92. We also note that KLYCY has a PEG ratio of 0.59. 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. VET currently has a PEG ratio of 0.99.

Another notable valuation metric for KLYCY is its P/B ratio of 0.86. 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, VET has a P/B of 1.75.

These metrics, and several others, help KLYCY earn a Value grade of A, while VET has been given a Value grade of C.

KLYCY sticks out from VET in both our Zacks Rank and Style Scores models, so value investors will likely feel that KLYCY is the better option right now.


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Vermilion Energy Inc. (VET) - free report >>

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