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GPOR vs. EOG: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Oil and Gas - Exploration and Production - United States sector might want to consider either Gulfport Energy (GPOR - Free Report) or EOG Resources (EOG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Gulfport Energy and EOG Resources have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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 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.

GPOR currently has a forward P/E ratio of 6.89, while EOG has a forward P/E of 21.46. We also note that GPOR has a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EOG currently has a PEG ratio of 1.79.

Another notable valuation metric for GPOR is its P/B ratio of 0.58. 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, EOG has a P/B of 4.07.

Based on these metrics and many more, GPOR holds a Value grade of A, while EOG has a Value grade of D.

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


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EOG Resources, Inc. (EOG) - free report >>

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