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BP or FUPBY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Oil and Gas - Integrated - International sector might want to consider either BP (BP - Free Report) or 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both BP and Fuchs Petrolub SE Unsponsored ADR have a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.

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.

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.

BP currently has a forward P/E ratio of 5.96, while FUPBY has a forward P/E of 17.33. We also note that BP has a PEG ratio of 1.15. 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 1.57.

Another notable valuation metric for BP is its P/B ratio of 1.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FUPBY has a P/B of 2.70.

Based on these metrics and many more, BP holds a Value grade of A, while FUPBY has a Value grade of C.

Both BP and FUPBY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BP is the superior value option right now.


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BP p.l.c. (BP) - free report >>

Fuchs Petrolub SE Unsponsored ADR (FUPBY) - free report >>

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