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RDS.A vs. CVX: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of Shell Oil and Chevron (CVX - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Shell Oil and Chevron are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RDS.A currently has a forward P/E ratio of 7.78, while CVX has a forward P/E of 14.26. We also note that RDS.A has a PEG ratio of 1.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CVX currently has a PEG ratio of 2.85.
Another notable valuation metric for RDS.A is its P/B ratio of 0.90. 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, CVX has a P/B of 1.39.
Based on these metrics and many more, RDS.A holds a Value grade of A, while CVX has a Value grade of C.
Both RDS.A and CVX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RDS.A is the superior value option right now.
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RDS.A vs. CVX: Which Stock Is the Better Value Option?
Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of Shell Oil and Chevron (CVX - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Shell Oil and Chevron are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RDS.A currently has a forward P/E ratio of 7.78, while CVX has a forward P/E of 14.26. We also note that RDS.A has a PEG ratio of 1.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CVX currently has a PEG ratio of 2.85.
Another notable valuation metric for RDS.A is its P/B ratio of 0.90. 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, CVX has a P/B of 1.39.
Based on these metrics and many more, RDS.A holds a Value grade of A, while CVX has a Value grade of C.
Both RDS.A and CVX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RDS.A is the superior value option right now.