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MRO vs. ETRN: Which Stock Is the Better Value Option?
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Investors interested in Oil and Gas - Integrated - United States stocks are likely familiar with Marathon Oil (MRO - Free Report) and Equitrans Midstream (ETRN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Marathon Oil has a Zacks Rank of #2 (Buy), while Equitrans Midstream has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MRO likely has seen a stronger improvement to its earnings outlook than ETRN has recently. But this is just one piece of the puzzle for value investors.
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.
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.
MRO currently has a forward P/E ratio of 10.48, while ETRN has a forward P/E of 20.67. We also note that MRO has a PEG ratio of 0.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ETRN currently has a PEG ratio of 1.17.
Another notable valuation metric for MRO is its P/B ratio of 1.54. 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, ETRN has a P/B of 2.91.
Based on these metrics and many more, MRO holds a Value grade of A, while ETRN has a Value grade of C.
MRO has seen stronger estimate revision activity and sports more attractive valuation metrics than ETRN, so it seems like value investors will conclude that MRO is the superior option right now.
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MRO vs. ETRN: Which Stock Is the Better Value Option?
Investors interested in Oil and Gas - Integrated - United States stocks are likely familiar with Marathon Oil (MRO - Free Report) and Equitrans Midstream (ETRN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Marathon Oil has a Zacks Rank of #2 (Buy), while Equitrans Midstream has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MRO likely has seen a stronger improvement to its earnings outlook than ETRN has recently. But this is just one piece of the puzzle for value investors.
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.
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.
MRO currently has a forward P/E ratio of 10.48, while ETRN has a forward P/E of 20.67. We also note that MRO has a PEG ratio of 0.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ETRN currently has a PEG ratio of 1.17.
Another notable valuation metric for MRO is its P/B ratio of 1.54. 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, ETRN has a P/B of 2.91.
Based on these metrics and many more, MRO holds a Value grade of A, while ETRN has a Value grade of C.
MRO has seen stronger estimate revision activity and sports more attractive valuation metrics than ETRN, so it seems like value investors will conclude that MRO is the superior option right now.