Investors interested in Oil and Gas - Exploration and Production - United States stocks are likely familiar with Devon Energy (DVN) and EOG Resources (EOG). 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.

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, both Devon Energy and EOG Resources are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

DVN currently has a forward P/E ratio of 7.64, while EOG has a forward P/E of 11.58. We also note that DVN has a PEG ratio of 1.16. 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. EOG currently has a PEG ratio of 3.53.

Another notable valuation metric for DVN is its P/B ratio of 1.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EOG has a P/B of 2.54.

These are just a few of the metrics contributing to DVN's Value grade of A and EOG's Value grade of C.

Both DVN and EOG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DVN is the superior value option right now.

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Devon Energy Corporation (DVN) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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