LYSDY vs. WPM: Which Stock Is the Better Value Option?

WPM LYSDY

Investors with an interest in Mining - Miscellaneous stocks have likely encountered both Lynas Corp. (LYSDY - Free Report) and Wheaton Precious Metals Corp. (WPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Lynas Corp. and Wheaton Precious Metals Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LYSDY 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 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

LYSDY currently has a forward P/E ratio of 10.24, while WPM has a forward P/E of 44.75. We also note that LYSDY has a PEG ratio of 0.75. 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. WPM currently has a PEG ratio of 3.19.

Another notable valuation metric for LYSDY is its P/B ratio of 2.76. 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, WPM has a P/B of 3.25.

These metrics, and several others, help LYSDY earn a Value grade of B, while WPM has been given a Value grade of F.

LYSDY stands above WPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LYSDY is the superior value option right now.

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