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SSL 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 Sasol (SSL - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Sasol has a Zacks Rank of #1 (Strong Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #4 (Sell). This means that SSL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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.

SSL currently has a forward P/E ratio of 2.84, while FUPBY has a forward P/E of 18.41. We also note that SSL has a PEG ratio of 0.27. 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 1.62.

Another notable valuation metric for SSL is its P/B ratio of 0.40. 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 3.28.

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

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


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