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

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Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Shell and Fuchs Petrolub SE Unsponsored ADR are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

SHEL currently has a forward P/E ratio of 5.34, while FUPBY has a forward P/E of 17.36. We also note that SHEL has a PEG ratio of 0.61. 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 1.58.

Another notable valuation metric for SHEL is its P/B ratio of 1.08. 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 2.19.

Based on these metrics and many more, SHEL holds a Value grade of A, while FUPBY has a Value grade of C.

Both SHEL and FUPBY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SHEL is the superior value option right now.


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

Shell PLC Unsponsored ADR (SHEL) - free report >>

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