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REPYY vs. FUPBY: 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 Repsol SA (REPYY - Free Report) and Fuchs Petrolub SE Unsponsored ADR (FUPBY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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, Repsol SA is sporting a Zacks Rank of #2 (Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #3 (Hold). This means that REPYY'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 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.

REPYY currently has a forward P/E ratio of 3.90, while FUPBY has a forward P/E of 17.77. We also note that REPYY has a PEG ratio of 0.44. 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. FUPBY currently has a PEG ratio of 1.61.

Another notable valuation metric for REPYY is its P/B ratio of 0.88. 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, FUPBY has a P/B of 2.58.

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

REPYY sticks out from FUPBY in both our Zacks Rank and Style Scores models, so value investors will likely feel that REPYY is the better option right now.


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Repsol SA (REPYY) - free report >>

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