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SSL or CVX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Sasol (SSL - Free Report) 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.
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.
Sasol and Chevron are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SSL currently has a forward P/E ratio of 5.88, while CVX has a forward P/E of 13.40. We also note that SSL has a PEG ratio of 0.36. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CVX currently has a PEG ratio of 1.61.
Another notable valuation metric for SSL is its P/B ratio of 1.32. 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 2.06.
Based on these metrics and many more, SSL holds a Value grade of A, while CVX has a Value grade of C.
Both SSL and CVX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SSL is the superior value option right now.
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SSL or CVX: Which Is the Better Value Stock Right Now?
Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Sasol (SSL - Free Report) 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.
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.
Sasol and Chevron are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SSL currently has a forward P/E ratio of 5.88, while CVX has a forward P/E of 13.40. We also note that SSL has a PEG ratio of 0.36. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CVX currently has a PEG ratio of 1.61.
Another notable valuation metric for SSL is its P/B ratio of 1.32. 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 2.06.
Based on these metrics and many more, SSL holds a Value grade of A, while CVX has a Value grade of C.
Both SSL and CVX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SSL is the superior value option right now.