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CVX vs. XOM: 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 Chevron (CVX - Free Report) and Exxon Mobil (XOM - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Chevron has a Zacks Rank of #2 (Buy), while Exxon Mobil has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CVX has an improving earnings outlook. 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.
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.
CVX currently has a forward P/E ratio of 11.52, while XOM has a forward P/E of 12.24. We also note that CVX has a PEG ratio of 2.30. 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. XOM currently has a PEG ratio of 4.08.
Another notable valuation metric for CVX is its P/B ratio of 1.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, XOM has a P/B of 2.21.
These metrics, and several others, help CVX earn a Value grade of B, while XOM has been given a Value grade of C.
CVX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CVX is likely the superior value option right now.
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CVX vs. XOM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of Chevron (CVX - Free Report) and Exxon Mobil (XOM - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Chevron has a Zacks Rank of #2 (Buy), while Exxon Mobil has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CVX has an improving earnings outlook. 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.
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.
CVX currently has a forward P/E ratio of 11.52, while XOM has a forward P/E of 12.24. We also note that CVX has a PEG ratio of 2.30. 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. XOM currently has a PEG ratio of 4.08.
Another notable valuation metric for CVX is its P/B ratio of 1.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, XOM has a P/B of 2.21.
These metrics, and several others, help CVX earn a Value grade of B, while XOM has been given a Value grade of C.
CVX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CVX is likely the superior value option right now.