E vs. FUPBY: Which Stock Is the Better Value Option?
Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Eni SpA (E) and Fuchs Petrolub SE Unsponsored ADR (FUPBY). But which of these two stocks presents investors with the better value opportunity right now? 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.
Eni SpA and Fuchs Petrolub SE Unsponsored ADR are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that E is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
E currently has a forward P/E ratio of 7.03, while FUPBY has a forward P/E of 18. We also note that E has a PEG ratio of 1.11. 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. FUPBY currently has a PEG ratio of 1.56.
Another notable valuation metric for E is its P/B ratio of 0.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FUPBY has a P/B of 3.20.
These metrics, and several others, help E earn a Value grade of A, while FUPBY has been given a Value grade of D.
E has seen stronger estimate revision activity and sports more attractive valuation metrics than FUPBY, so it seems like value investors will conclude that E is the superior option right now.
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Eni SpA (E) : Free Stock Analysis Report
Fuchs Petrolub SE Unsponsored ADR (FUPBY) : Free Stock Analysis Report
