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E vs. FUPBY: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both Eni SpA (E - Free Report) and Fuchs Petrolub SE Unsponsored ADR (FUPBY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Eni SpA has a Zacks Rank of #2 (Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that E has an improving earnings 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.

E currently has a forward P/E ratio of 2.97, while FUPBY has a forward P/E of 15.95. We also note that E has a PEG ratio of 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FUPBY currently has a PEG ratio of 1.57.

Another notable valuation metric for E is its P/B ratio of 0.79. 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 1.93.

These metrics, and several others, help E earn a Value grade of A, while FUPBY has been given a Value grade of C.

E 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 E is likely the superior value option right now.


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Eni SpA (E) - free report >>

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