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SSL vs. VIST: Which Stock Is the Better Value Option?

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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Sasol (SSL - Free Report) and Vista Energy, S.A.B. de C.V. - Sponsored ADR (VIST - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Sasol is sporting a Zacks Rank of #1 (Strong Buy), while Vista Energy, S.A.B. de C.V. - Sponsored ADR has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that SSL likely has seen a stronger improvement to its earnings outlook than VIST has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SSL currently has a forward P/E ratio of 2.75, while VIST has a forward P/E of 8.90. We also note that SSL has a PEG ratio of 0.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VIST currently has a PEG ratio of 1.89.

Another notable valuation metric for SSL is its P/B ratio of 0.41. 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, VIST has a P/B of 2.72.

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

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


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