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TOT or CVX: Which Is the Better Value Stock Right Now?

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Investors interested in Oil and Gas - Integrated - International stocks are likely familiar with TOTAL SE and Chevron (CVX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

TOTAL SE and Chevron are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that TOT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

TOT currently has a forward P/E ratio of 12.29, while CVX has a forward P/E of 27.45. We also note that TOT has a PEG ratio of 2.67. 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 5.49.

Another notable valuation metric for TOT is its P/B ratio of 1.07. 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, CVX has a P/B of 1.31.

These metrics, and several others, help TOT earn a Value grade of B, while CVX has been given a Value grade of C.

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


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