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OXY or DTM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Oil and Gas - Integrated - United States sector have probably already heard of Occidental Petroleum (OXY - Free Report) and DT Midstream (DTM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Occidental Petroleum has a Zacks Rank of #2 (Buy), while DT Midstream 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 OXY is likely seeing its earnings outlook improve to a greater extent. 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.
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.
OXY currently has a forward P/E ratio of 9.40, while DTM has a forward P/E of 26.54. We also note that OXY has a PEG ratio of 0.74. 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. DTM currently has a PEG ratio of 1.73.
Another notable valuation metric for OXY is its P/B ratio of 1.87. 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, DTM has a P/B of 2.56.
These are just a few of the metrics contributing to OXY's Value grade of A and DTM's Value grade of D.
OXY sticks out from DTM in both our Zacks Rank and Style Scores models, so value investors will likely feel that OXY is the better option right now.
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OXY or DTM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Oil and Gas - Integrated - United States sector have probably already heard of Occidental Petroleum (OXY - Free Report) and DT Midstream (DTM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Occidental Petroleum has a Zacks Rank of #2 (Buy), while DT Midstream 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 OXY is likely seeing its earnings outlook improve to a greater extent. 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.
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.
OXY currently has a forward P/E ratio of 9.40, while DTM has a forward P/E of 26.54. We also note that OXY has a PEG ratio of 0.74. 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. DTM currently has a PEG ratio of 1.73.
Another notable valuation metric for OXY is its P/B ratio of 1.87. 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, DTM has a P/B of 2.56.
These are just a few of the metrics contributing to OXY's Value grade of A and DTM's Value grade of D.
OXY sticks out from DTM in both our Zacks Rank and Style Scores models, so value investors will likely feel that OXY is the better option right now.