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COP vs. WHD: Which Stock Is the Better Value Option?
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Investors with an interest in Oil and Gas - Integrated - United States stocks have likely encountered both ConocoPhillips (COP - Free Report) and Cactus, Inc. (WHD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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, both ConocoPhillips and Cactus, Inc. are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 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.
COP currently has a forward P/E ratio of 13.94, while WHD has a forward P/E of 18.15. We also note that COP has a PEG ratio of 0.77. 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 1.94.
Another notable valuation metric for COP is its P/B ratio of 3.19. 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, WHD has a P/B of 4.34.
These are just a few of the metrics contributing to COP's Value grade of B and WHD's Value grade of D.
Both COP and WHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COP is the superior value option right now.
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COP vs. WHD: Which Stock Is the Better Value Option?
Investors with an interest in Oil and Gas - Integrated - United States stocks have likely encountered both ConocoPhillips (COP - Free Report) and Cactus, Inc. (WHD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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, both ConocoPhillips and Cactus, Inc. are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 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.
COP currently has a forward P/E ratio of 13.94, while WHD has a forward P/E of 18.15. We also note that COP has a PEG ratio of 0.77. 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 1.94.
Another notable valuation metric for COP is its P/B ratio of 3.19. 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, WHD has a P/B of 4.34.
These are just a few of the metrics contributing to COP's Value grade of B and WHD's Value grade of D.
Both COP and WHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that COP is the superior value option right now.