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BKR or CLB: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Baker Hughes (BKR - Free Report) and Core Laboratories (CLB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Baker Hughes and Core Laboratories are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BKR has an improving earnings outlook. But this is only part of the picture 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.
BKR currently has a forward P/E ratio of 17.49, while CLB has a forward P/E of 25.97. We also note that BKR has a PEG ratio of 0.62. 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. CLB currently has a PEG ratio of 1.17.
Another notable valuation metric for BKR is its P/B ratio of 2.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CLB has a P/B of 4.67.
These metrics, and several others, help BKR earn a Value grade of B, while CLB has been given a Value grade of C.
BKR stands above CLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BKR is the superior value option right now.
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BKR or CLB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Baker Hughes (BKR - Free Report) and Core Laboratories (CLB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Baker Hughes and Core Laboratories are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BKR has an improving earnings outlook. But this is only part of the picture 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.
BKR currently has a forward P/E ratio of 17.49, while CLB has a forward P/E of 25.97. We also note that BKR has a PEG ratio of 0.62. 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. CLB currently has a PEG ratio of 1.17.
Another notable valuation metric for BKR is its P/B ratio of 2.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CLB has a P/B of 4.67.
These metrics, and several others, help BKR earn a Value grade of B, while CLB has been given a Value grade of C.
BKR stands above CLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BKR is the superior value option right now.