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UGP or WMB: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Oil and Gas - Production and Pipelines sector might want to consider either Ultrapar Participacoes S.A. (UGP - Free Report) or Williams Companies, Inc. (The) (WMB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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, Ultrapar Participacoes S.A. is sporting a Zacks Rank of #1 (Strong Buy), while Williams Companies, Inc. (The) has a Zacks Rank of #3 (Hold). This means that UGP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
UGP currently has a forward P/E ratio of 15.04, while WMB has a forward P/E of 21.46. We also note that UGP has a PEG ratio of 3. 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. WMB currently has a PEG ratio of 6.13.
Another notable valuation metric for UGP is its P/B ratio of 2.06. 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, WMB has a P/B of 3.20.
Based on these metrics and many more, UGP holds a Value grade of A, while WMB has a Value grade of D.
UGP stands above WMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UGP is the superior value option right now.
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UGP or WMB: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Oil and Gas - Production and Pipelines sector might want to consider either Ultrapar Participacoes S.A. (UGP - Free Report) or Williams Companies, Inc. (The) (WMB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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, Ultrapar Participacoes S.A. is sporting a Zacks Rank of #1 (Strong Buy), while Williams Companies, Inc. (The) has a Zacks Rank of #3 (Hold). This means that UGP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
UGP currently has a forward P/E ratio of 15.04, while WMB has a forward P/E of 21.46. We also note that UGP has a PEG ratio of 3. 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. WMB currently has a PEG ratio of 6.13.
Another notable valuation metric for UGP is its P/B ratio of 2.06. 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, WMB has a P/B of 3.20.
Based on these metrics and many more, UGP holds a Value grade of A, while WMB has a Value grade of D.
UGP stands above WMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UGP is the superior value option right now.