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E vs. FUPBY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of Eni SpA (E - Free Report) and Fuchs Petrolub SE Unsponsored ADR (FUPBY - 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Eni SpA is sporting a Zacks Rank of #2 (Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that E likely has seen a stronger improvement to its earnings outlook than FUPBY has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

E currently has a forward P/E ratio of 2.90, while FUPBY has a forward P/E of 16.48. We also note that E has a PEG ratio of 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FUPBY currently has a PEG ratio of 1.66.

Another notable valuation metric for E is its P/B ratio of 0.77. 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, FUPBY has a P/B of 1.95.

These metrics, and several others, help E earn a Value grade of A, while FUPBY has been given a Value grade of C.

E stands above FUPBY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that E is the superior value option right now.


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