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E or XOM: 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 Eni SpA (E - Free Report) and Exxon Mobil (XOM - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Eni SpA and Exxon Mobil are both sporting a Zacks Rank of # 1 (Strong Buy) right now. 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 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.
E currently has a forward P/E ratio of 4.30, while XOM has a forward P/E of 8.61. We also note that E has a PEG ratio of 0.42. 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. XOM currently has a PEG ratio of 0.43.
Another notable valuation metric for E is its P/B ratio of 0.94. 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, XOM has a P/B of 2.04.
These metrics, and several others, help E earn a Value grade of A, while XOM has been given a Value grade of C.
Both E and XOM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that E is the superior value option right now.
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E or XOM: Which Is the Better Value Stock Right Now?
Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Eni SpA (E - Free Report) and Exxon Mobil (XOM - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Eni SpA and Exxon Mobil are both sporting a Zacks Rank of # 1 (Strong Buy) right now. 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 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.
E currently has a forward P/E ratio of 4.30, while XOM has a forward P/E of 8.61. We also note that E has a PEG ratio of 0.42. 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. XOM currently has a PEG ratio of 0.43.
Another notable valuation metric for E is its P/B ratio of 0.94. 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, XOM has a P/B of 2.04.
These metrics, and several others, help E earn a Value grade of A, while XOM has been given a Value grade of C.
Both E and XOM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that E is the superior value option right now.