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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both YPF Sociedad Anonima (YPF) and Fuchs Petrolub SE Unsponsored ADR (FUPBY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, YPF Sociedad Anonima is sporting a Zacks Rank of #2 (Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #3 (Hold). This means that YPF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
YPF currently has a forward P/E ratio of 8.22, while FUPBY has a forward P/E of 17.13. We also note that YPF has a PEG ratio of 0.19. 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. FUPBY currently has a PEG ratio of 2.04.
Another notable valuation metric for YPF is its P/B ratio of 1.31. 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, FUPBY has a P/B of 3.36.
Based on these metrics and many more, YPF holds a Value grade of A, while FUPBY has a Value grade of C.
YPF is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that YPF is likely the superior value option right now.
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YPF Sociedad Anonima (YPF) : Free Stock Analysis Report
Fuchs Petrolub SE Unsponsored ADR (FUPBY) : Free Stock Analysis Report