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SHEL vs. FUPBY: Which Stock Is the Better Value Option?

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Investors interested in Oil and Gas - Integrated - International stocks are likely familiar with Shell (SHEL - 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, Shell has a Zacks Rank of #1 (Strong Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #3 (Hold). This means that SHEL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

SHEL currently has a forward P/E ratio of 4.64, while FUPBY has a forward P/E of 15.44. We also note that SHEL has a PEG ratio of 0.51. 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 1.52.

Another notable valuation metric for SHEL is its P/B ratio of 1.06. 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 1.87.

These are just a few of the metrics contributing to SHEL's Value grade of A and FUPBY's Value grade of C.

SHEL has seen stronger estimate revision activity and sports more attractive valuation metrics than FUPBY, so it seems like value investors will conclude that SHEL is the superior option right now.


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Fuchs Petrolub SE Unsponsored ADR (FUPBY) - free report >>

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