VALERO ENERGY CORP/TX (VLO) vs. SCHLUMBERGER LIMITED/NV (SLB) Stock Comparison & Valuation | Edwyn

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VALERO ENERGY CORP/TX (VLO) vs. SCHLUMBERGER LIMITED/NV (SLB) Stock Comparison & Valuation | Edwyn

Updated 2026-04-15 17:28 UTC

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VLO trades ~28.5% above the SLB-implied P/E value while exhibiting materially weaker margins and ROIC, implying meaningful downside risk unless profitability meaningfully improves.

Actionable Takeaway

If you believe the market will re-rate VLO to SLB's earnings multiple (P/E compressing toward ~22.2x), then underweight or sell VLO because SLB-implied P/E implies ~28.5% downside to $168.12 and VLO's margins and ROIC are materially weaker; if instead you believe VLO can close the margin/ROIC gap to SLB (improving operating margin and ROIC significantly), then consider buying because the current price already prices in persistent lower profitability.

VLO's current price ($235.18) is above SLB-implied P/E price ($168.12), implying a -28.5% downside versus SLB-based valuation. Valuation signals are mixed: VLO is P/E-expensive relative to SLB but cheaper on P/S and roughly in line on EV/EBITDA, and the current price sits inside VLO's historical band.

Supporting Metrics

Key Risks

Earnings multiple re-rating risk: VLO P/E 31.1x vs SLB 22.2x could compress and drive ~-28.5% downside.
Persistent profitability gap: VLO gross margin 4.4% and net margin 1.9% vs SLB 20.7% and 9.4% — failure to improve margins would justify a sustained valuation discount.
Limited quality signal and incomplete distress metrics: Piotroski F-Score 5/9 and Altman Z-Score N/A leave uncertainty on internal financial strength and short-term distress vulnerability.