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OXY vs. WHD: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Oil and Gas - Integrated - United States sector might want to consider either Occidental Petroleum (OXY - Free Report) or Cactus, Inc. (WHD - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Occidental Petroleum and Cactus, Inc. are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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 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.
OXY currently has a forward P/E ratio of 6.04, while WHD has a forward P/E of 23.74. We also note that OXY has a PEG ratio of 0.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WHD currently has a PEG ratio of 0.64.
Another notable valuation metric for OXY is its P/B ratio of 3.93. 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, WHD has a P/B of 4.55.
These metrics, and several others, help OXY earn a Value grade of A, while WHD has been given a Value grade of D.
Both OXY and WHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OXY is the superior value option right now.
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OXY vs. WHD: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Oil and Gas - Integrated - United States sector might want to consider either Occidental Petroleum (OXY - Free Report) or Cactus, Inc. (WHD - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Occidental Petroleum and Cactus, Inc. are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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 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.
OXY currently has a forward P/E ratio of 6.04, while WHD has a forward P/E of 23.74. We also note that OXY has a PEG ratio of 0.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WHD currently has a PEG ratio of 0.64.
Another notable valuation metric for OXY is its P/B ratio of 3.93. 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, WHD has a P/B of 4.55.
These metrics, and several others, help OXY earn a Value grade of A, while WHD has been given a Value grade of D.
Both OXY and WHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OXY is the superior value option right now.