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PDCE vs. PXD: 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 PDC Energy and Pioneer Natural Resources (PXD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both PDC Energy and Pioneer Natural Resources are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
PDCE currently has a forward P/E ratio of 10.89, while PXD has a forward P/E of 19.47. We also note that PDCE has a PEG ratio of 0.28. 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. PXD currently has a PEG ratio of 2.28.
Another notable valuation metric for PDCE is its P/B ratio of 1.11. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PXD has a P/B of 1.92.
These are just a few of the metrics contributing to PDCE's Value grade of B and PXD's Value grade of D.
Both PDCE and PXD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PDCE is the superior value option right now.
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PDCE vs. PXD: Which Stock Is the Better Value Option?
Investors with an interest in Oil and Gas - Exploration and Production - United States stocks have likely encountered both PDC Energy and Pioneer Natural Resources (PXD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both PDC Energy and Pioneer Natural Resources are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
PDCE currently has a forward P/E ratio of 10.89, while PXD has a forward P/E of 19.47. We also note that PDCE has a PEG ratio of 0.28. 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. PXD currently has a PEG ratio of 2.28.
Another notable valuation metric for PDCE is its P/B ratio of 1.11. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PXD has a P/B of 1.92.
These are just a few of the metrics contributing to PDCE's Value grade of B and PXD's Value grade of D.
Both PDCE and PXD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PDCE is the superior value option right now.