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MOS or SQM: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Fertilizers sector might want to consider either Mosaic (MOS - Free Report) or SQM (SQM - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Mosaic has a Zacks Rank of #2 (Buy), while SQM has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MOS 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 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.

MOS currently has a forward P/E ratio of 21.30, while SQM has a forward P/E of 57.49. We also note that MOS has a PEG ratio of 3.04. 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. SQM currently has a PEG ratio of 3.45.

Another notable valuation metric for MOS is its P/B ratio of 1.17. 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, SQM has a P/B of 7.48.

These metrics, and several others, help MOS earn a Value grade of B, while SQM has been given a Value grade of D.

MOS has seen stronger estimate revision activity and sports more attractive valuation metrics than SQM, so it seems like value investors will conclude that MOS is the superior option right now.


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Sociedad Quimica y Minera S.A. (SQM) - free report >>

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