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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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Gulfport Energy and EOG Resources are holding a Zacks Rank of # 2 (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 factor that value investors are interested in.

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.

GPOR currently has a forward P/E ratio of 5.64, while EOG has a forward P/E of 18.06. We also note that GPOR has a PEG ratio of 0.42. 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. EOG currently has a PEG ratio of 1.17.

Another notable valuation metric for GPOR is its P/B ratio of 0.49. 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 3.50.

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

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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