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

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Investors interested in stocks from the Oil and Gas - Exploration and Production - United States sector have probably already heard of Gulfport Energy (GPOR - Free Report) and Pioneer Natural Resources (PXD - 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.

Currently, Gulfport Energy has a Zacks Rank of #2 (Buy), while Pioneer Natural Resources has a Zacks Rank of #3 (Hold). This means that GPOR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

GPOR currently has a forward P/E ratio of 4.95, while PXD has a forward P/E of 20.34. We also note that GPOR has a PEG ratio of 0.37. 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. PXD currently has a PEG ratio of 1.67.

Another notable valuation metric for GPOR is its P/B ratio of 0.47. 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, PXD has a P/B of 2.09.

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

GPOR stands above PXD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPOR is the superior value option right now.


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Pioneer Natural Resources Company (PXD) - free report >>

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