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KLYCY or VET: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Oil and Gas - Exploration and Production - International sector might want to consider either KUNLUN EGY ADR (KLYCY - Free Report) or Vermilion Energy (VET - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, KUNLUN EGY ADR has a Zacks Rank of #1 (Strong Buy), while Vermilion Energy has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KLYCY likely has seen a stronger improvement to its earnings outlook than VET has recently. However, value investors will care about much more than just this.

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 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.

KLYCY currently has a forward P/E ratio of 8.78, while VET has a forward P/E of 29.97. We also note that KLYCY has a PEG ratio of 0.59. 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. VET currently has a PEG ratio of 1.14.

Another notable valuation metric for KLYCY is its P/B ratio of 0.79. 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, VET has a P/B of 1.86.

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

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


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Vermilion Energy Inc. (VET) - free report >>

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