Back to top

Image: Bigstock

YPF or FUPBY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Oil and Gas - Integrated - International stocks have likely encountered both YPF Sociedad Anonima (YPF - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, YPF Sociedad Anonima is sporting a Zacks Rank of #1 (Strong Buy), while Fuchs Petrolub SE Unsponsored ADR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that YPF has an improving earnings 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

YPF currently has a forward P/E ratio of 8.97, while FUPBY has a forward P/E of 14.90. We also note that YPF has a PEG ratio of 0.20. 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. FUPBY currently has a PEG ratio of 1.77.

Another notable valuation metric for YPF is its P/B ratio of 1.46. 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, FUPBY has a P/B of 2.92.

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

YPF has seen stronger estimate revision activity and sports more attractive valuation metrics than FUPBY, so it seems like value investors will conclude that YPF is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


YPF Sociedad Anonima (YPF) - free report >>

FUCHS SE - Unsponsored ADR (FUPBY) - free report >>

Published in