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MPC vs. VLO: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Oil and Gas - Refining and Marketing sector have probably already heard of Marathon Petroleum (MPC - Free Report) and Valero Energy (VLO - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Both Marathon Petroleum and Valero Energy have 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 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.
MPC currently has a forward P/E ratio of 6.09, while VLO has a forward P/E of 6.77. We also note that MPC has a PEG ratio of 0.31. 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. VLO currently has a PEG ratio of 1.13.
Another notable valuation metric for MPC is its P/B ratio of 1.58. 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, VLO has a P/B of 2.32.
These metrics, and several others, help MPC earn a Value grade of B, while VLO has been given a Value grade of C.
Both MPC and VLO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MPC is the superior value option right now.
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MPC vs. VLO: Which Stock Is the Better Value Option?
Investors interested in stocks from the Oil and Gas - Refining and Marketing sector have probably already heard of Marathon Petroleum (MPC - Free Report) and Valero Energy (VLO - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Both Marathon Petroleum and Valero Energy have 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 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.
MPC currently has a forward P/E ratio of 6.09, while VLO has a forward P/E of 6.77. We also note that MPC has a PEG ratio of 0.31. 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. VLO currently has a PEG ratio of 1.13.
Another notable valuation metric for MPC is its P/B ratio of 1.58. 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, VLO has a P/B of 2.32.
These metrics, and several others, help MPC earn a Value grade of B, while VLO has been given a Value grade of C.
Both MPC and VLO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MPC is the superior value option right now.