Investors interested in stocks from the Oil and Gas - Integrated - International sector have probably already heard of YPF Sociedad Anonima (YPF) and Fuchs Petrolub SE Unsponsored ADR (FUPBY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, both YPF Sociedad Anonima and Fuchs Petrolub SE Unsponsored ADR are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

YPF currently has a forward P/E ratio of 5.61, while FUPBY has a forward P/E of 18.48. We also note that YPF has a PEG ratio of 0.13. 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 2.20.

Another notable valuation metric for YPF is its P/B ratio of 1.40. 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 3.30.

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

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

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Fuchs Petrolub SE Unsponsored ADR (FUPBY) : Free Stock Analysis Report

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