Investors looking for stocks in the Oil and Gas - Integrated - International sector might want to consider either Repsol SA (OTC:REPYY) or Eni SpA (E). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Repsol SA has a Zacks Rank of #1 (Strong Buy), while Eni SpA has a Zacks Rank of #2 (Buy). This means that REPYY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
REPYY currently has a forward P/E ratio of 9.69, while E has a forward P/E of 15.19. We also note that REPYY has a PEG ratio of 0.24. 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. E currently has a PEG ratio of 0.78.
Another notable valuation metric for REPYY is its P/B ratio of 0.82. 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, E has a P/B of 1.03.
These are just a few of the metrics contributing to REPYY's Value grade of B and E's Value grade of C.
REPYY sticks out from E in both our Zacks Rank and Style Scores models, so value investors will likely feel that REPYY is the better option right now.
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Repsol SA (REPYY): Free Stock Analysis Report
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