Advertisement
UK markets close in 5 hours 7 minutes

  • FTSE 100

    8,089.71
    +44.90 (+0.56%)
     

  • FTSE 250

    19,805.24
    +5.52 (+0.03%)
     

  • AIM

    754.92
    +0.05 (+0.01%)
     

  • GBP/EUR

    1.1632
    +0.0004 (+0.04%)
     

  • GBP/USD

    1.2434
    -0.0019 (-0.15%)
     

  • Bitcoin GBP

    53,381.49
    +198.83 (+0.37%)
     

  • CMC Crypto 200

    1,434.43
    +10.33 (+0.73%)
     

  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     

  • DOW

    38,503.69
    +263.71 (+0.69%)
     

  • CRUDE OIL

    82.97
    -0.39 (-0.47%)
     

  • GOLD FUTURES

    2,330.50
    -11.60 (-0.50%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

  • HANG SENG

    17,201.27
    +372.34 (+2.21%)
     

  • DAX

    18,172.21
    +34.56 (+0.19%)
     

  • CAC 40

    8,130.35
    +24.57 (+0.30%)
     
Money:

The five essential pieces of financial paperwork you must never lose

Mislaying key documents can cause real headaches, so it’s worth tracking down these most commonly-lost bits of paperwork

SLB vs. CLB: Which Stock Is the Better Value Option?

Zacks Equity Research
·2-min read

Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Schlumberger (SLB) and Core Laboratories (CLB). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Schlumberger is sporting a Zacks Rank of #2 (Buy), while Core Laboratories has a Zacks Rank of #3 (Hold). This means that SLB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

ADVERTISEMENT

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.

SLB currently has a forward P/E ratio of 18.53, while CLB has a forward P/E of 31.67. We also note that SLB has a PEG ratio of 0.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CLB currently has a PEG ratio of 0.78.

Another notable valuation metric for SLB is its P/B ratio of 3.18. 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, CLB has a P/B of 4.54.

These metrics, and several others, help SLB earn a Value grade of B, while CLB has been given a Value grade of C.

SLB stands above CLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SLB is 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
 
Schlumberger Limited (SLB) : Free Stock Analysis Report
 
Core Laboratories N.V. (CLB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research