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REPYY vs. E: Which Stock Should Value Investors Buy Now?

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Investors interested in Oil and Gas - Integrated - International stocks are likely familiar with Repsol SA (REPYY - Free Report) and Eni SpA (E - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Repsol SA and Eni SpA are both sporting a Zacks Rank of # 1 (Strong 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 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.

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.

REPYY currently has a forward P/E ratio of 10.88, while E has a forward P/E of 16.17. We also note that REPYY has a PEG ratio of 0.30. 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. E currently has a PEG ratio of 0.73.

Another notable valuation metric for REPYY is its P/B ratio of 0.89. 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, E has a P/B of 1.06.

These are just a few of the metrics contributing to REPYY's Value grade of B and E's Value grade of D.

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


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