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SLB vs. LIN: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Oil and Gas - Field Services stocks have likely encountered both Schlumberger (SLB - Free Report) and Linde (LIN - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Schlumberger is sporting a Zacks Rank of #2 (Buy), while Linde has a Zacks Rank of #3 (Hold). This means that SLB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
SLB currently has a forward P/E ratio of 19.28, while LIN has a forward P/E of 23.94. We also note that SLB 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. LIN currently has a PEG ratio of 2.39.
Another notable valuation metric for SLB is its P/B ratio of 3.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LIN has a P/B of 3.23.
Based on these metrics and many more, SLB holds a Value grade of B, while LIN has a Value grade of C.
SLB has seen stronger estimate revision activity and sports more attractive valuation metrics than LIN, so it seems like value investors will conclude that SLB is the superior option right now.
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SLB vs. LIN: Which Stock Should Value Investors Buy Now?
Investors with an interest in Oil and Gas - Field Services stocks have likely encountered both Schlumberger (SLB - Free Report) and Linde (LIN - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Schlumberger is sporting a Zacks Rank of #2 (Buy), while Linde has a Zacks Rank of #3 (Hold). This means that SLB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
SLB currently has a forward P/E ratio of 19.28, while LIN has a forward P/E of 23.94. We also note that SLB 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. LIN currently has a PEG ratio of 2.39.
Another notable valuation metric for SLB is its P/B ratio of 3.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LIN has a P/B of 3.23.
Based on these metrics and many more, SLB holds a Value grade of B, while LIN has a Value grade of C.
SLB has seen stronger estimate revision activity and sports more attractive valuation metrics than LIN, so it seems like value investors will conclude that SLB is the superior option right now.