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CNX vs. CRK: Which Stock Is the Better Value Option?
Investors looking for stocks in the Oil and Gas - Exploration and Production - United States sector might want to consider either CNX Resources Corporation. (CNX - Free Report) or Comstock Resources (CRK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
CNX Resources Corporation. and Comstock Resources are both sporting a Zacks Rank of # 2 (Buy) right now. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CNX currently has a forward P/E ratio of 12.81, while CRK has a forward P/E of 34.28. We also note that CNX has a PEG ratio of 0.40. 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. CRK currently has a PEG ratio of 1.52.
Another notable valuation metric for CNX is its P/B ratio of 1.10. 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, CRK has a P/B of 2.30.
These are just a few of the metrics contributing to CNX's Value grade of B and CRK's Value grade of C.
Both CNX and CRK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CNX is the superior value option right now.