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SLB vs. LIN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Schlumberger (SLB - Free Report) and Linde (LIN - 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.
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, Schlumberger has a Zacks Rank of #2 (Buy), while Linde has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SLB likely has seen a stronger improvement to its earnings outlook than LIN has recently. But this is only part of the picture 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SLB currently has a forward P/E ratio of 18.50, while LIN has a forward P/E of 24.04. We also note that SLB has a PEG ratio of 0.52. 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 2.40.
Another notable valuation metric for SLB is its P/B ratio of 3.09. 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, LIN has a P/B of 3.24.
These are just a few of the metrics contributing to SLB's Value grade of B and LIN's Value grade of C.
SLB stands above LIN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SLB is the superior value option right now.
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SLB vs. LIN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Schlumberger (SLB - Free Report) and Linde (LIN - 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.
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, Schlumberger has a Zacks Rank of #2 (Buy), while Linde has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SLB likely has seen a stronger improvement to its earnings outlook than LIN has recently. But this is only part of the picture 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SLB currently has a forward P/E ratio of 18.50, while LIN has a forward P/E of 24.04. We also note that SLB has a PEG ratio of 0.52. 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 2.40.
Another notable valuation metric for SLB is its P/B ratio of 3.09. 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, LIN has a P/B of 3.24.
These are just a few of the metrics contributing to SLB's Value grade of B and LIN's Value grade of C.
SLB stands above LIN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SLB is the superior value option right now.