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OMVKY or XOM: Which Is the Better Value Stock Right Now?

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Investors interested in Oil and Gas - Integrated - International stocks are likely familiar with OMV AG (OMVKY - Free Report) and Exxon Mobil (XOM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Right now, OMV AG is sporting a Zacks Rank of #2 (Buy), while Exxon Mobil has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OMVKY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

OMVKY currently has a forward P/E ratio of 8.72, while XOM has a forward P/E of 16.89. We also note that OMVKY has a PEG ratio of 1.27. 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. XOM currently has a PEG ratio of 2.68.

Another notable valuation metric for OMVKY is its P/B ratio of 0.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, XOM has a P/B of 1.71.

These are just a few of the metrics contributing to OMVKY's Value grade of A and XOM's Value grade of C.

OMVKY stands above XOM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OMVKY is the superior value option right now.


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