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PBF vs. NTOIY: Which Stock Is the Better Value Option?

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Investors with an interest in Oil and Gas - Refining and Marketing stocks have likely encountered both PBF Energy (PBF - Free Report) and Neste OYJ - Unsponsored ADR (NTOIY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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, both PBF Energy and Neste OYJ - Unsponsored ADR are sporting a Zacks Rank of #1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

PBF currently has a forward P/E ratio of 3.41, while NTOIY has a forward P/E of 10.26. We also note that PBF has a PEG ratio of 0.06. 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. NTOIY currently has a PEG ratio of 0.18.

Another notable valuation metric for PBF is its P/B ratio of 1.53. 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, NTOIY has a P/B of 2.81.

Based on these metrics and many more, PBF holds a Value grade of A, while NTOIY has a Value grade of C.

Both PBF and NTOIY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PBF is the superior value option right now.

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