Investors looking for stocks in the Oil and Gas - Integrated - International sector might want to consider either OMV AG (OMVKY) or Exxon Mobil (XOM). 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. 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits. Right now, OMV AG is sporting a Zacks Rank of #2 (Buy), while Exxon Mobil has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OMVKY is likely seeing its earnings outlook improve to a greater extent. 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. The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors. OMVKY currently has a forward P/E ratio of 9.09, while XOM has a forward P/E of 16.87. We also note that OMVKY has a PEG ratio of 1.33. 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. XOM currently has a PEG ratio of 2.06. Another notable valuation metric for OMVKY is its P/B ratio of 0.67. 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, XOM has a P/B of 1.65. These metrics, and several others, help OMVKY earn a Value grade of A, while XOM has been given a Value grade of C. OMVKY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OMVKY is likely the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OMV AG (OMVKY):Free Stock Analysis Report Exxon Mobil Corporation (XOM):Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments
OMVKY vs. XOM: Which Stock Should Value Investors Buy Now?
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