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PBF or NTOIY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Oil and Gas - Refining and Marketing sector might want to consider either PBF Energy (PBF - Free Report) or Neste OYJ - Unsponsored ADR (NTOIY - 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.

PBF Energy and Neste OYJ - Unsponsored ADR are both sporting a Zacks Rank of #1 (Strong Buy) right now. 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. However, value investors will care about much more than just this.

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.

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.

PBF currently has a forward P/E ratio of 2.95, while NTOIY has a forward P/E of 8.77. We also note that PBF has a PEG ratio of 0.08. 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 0.16.

Another notable valuation metric for PBF is its P/B ratio of 1.33. 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, NTOIY has a P/B of 2.61.

These are just a few of the metrics contributing to PBF's Value grade of A and NTOIY's 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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