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PTR 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 PetroChina and Chevron (CVX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, PetroChina has a Zacks Rank of #2 (Buy), while Chevron has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PTR likely has seen a stronger improvement to its earnings outlook than CVX has recently. But this is just one piece of the puzzle 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.

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.

PTR currently has a forward P/E ratio of 5.99, while CVX has a forward P/E of 13.72. We also note that PTR has a PEG ratio of 0.12. 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. CVX currently has a PEG ratio of 2.45.

Another notable valuation metric for PTR is its P/B ratio of 0.38. 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, CVX has a P/B of 1.63.

Based on these metrics and many more, PTR holds a Value grade of A, while CVX has a Value grade of D.

PTR stands above CVX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PTR is the superior value option right now.


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