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OVV vs. CNQ: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Oil and Gas - Exploration and Production - Canadian sector might want to consider either Ovintiv (OVV - Free Report) or Canadian Natural Resources (CNQ - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Ovintiv and Canadian Natural Resources are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
OVV currently has a forward P/E ratio of 18.27, while CNQ has a forward P/E of 32.10. We also note that OVV has a PEG ratio of 3.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNQ currently has a PEG ratio of 6.42.
Another notable valuation metric for OVV is its P/B ratio of 1. 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, CNQ has a P/B of 1.30.
Based on these metrics and many more, OVV holds a Value grade of B, while CNQ has a Value grade of C.
Both OVV and CNQ are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OVV is the superior value option right now.
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OVV vs. CNQ: Which Stock Is the Better Value Option?
Investors looking for stocks in the Oil and Gas - Exploration and Production - Canadian sector might want to consider either Ovintiv (OVV - Free Report) or Canadian Natural Resources (CNQ - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Ovintiv and Canadian Natural Resources are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
OVV currently has a forward P/E ratio of 18.27, while CNQ has a forward P/E of 32.10. We also note that OVV has a PEG ratio of 3.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNQ currently has a PEG ratio of 6.42.
Another notable valuation metric for OVV is its P/B ratio of 1. 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, CNQ has a P/B of 1.30.
Based on these metrics and many more, OVV holds a Value grade of B, while CNQ has a Value grade of C.
Both OVV and CNQ are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OVV is the superior value option right now.