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SHEL 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 Shell (SHEL - Free Report) or Fuchs Petrolub SE Unsponsored ADR (FUPBY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Shell is sporting a Zacks Rank of #2 (Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SHEL has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SHEL currently has a forward P/E ratio of 7.82, while FUPBY has a forward P/E of 16.63. We also note that SHEL has a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUPBY currently has a PEG ratio of 1.31.

Another notable valuation metric for SHEL is its P/B ratio of 1.17. 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 2.50.

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

SHEL has seen stronger estimate revision activity and sports more attractive valuation metrics than FUPBY, so it seems like value investors will conclude that SHEL is the superior option right now.


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

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