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

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Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Impala Platinum Holdings Ltd. (IMPUY - Free Report) and Wheaton Precious Metals Corp. (WPM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Currently, Impala Platinum Holdings Ltd. has a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IMPUY has an improving earnings outlook. 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 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.

IMPUY currently has a forward P/E ratio of 4.32, while WPM has a forward P/E of 29.25. We also note that IMPUY has a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WPM currently has a PEG ratio of 5.85.

Another notable valuation metric for IMPUY is its P/B ratio of 2.59. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WPM has a P/B of 3.40.

These metrics, and several others, help IMPUY earn a Value grade of A, while WPM has been given a Value grade of D.

IMPUY sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that IMPUY is the better option right now.


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Impala Platinum Holdings Ltd. (IMPUY) - free report >>

Wheaton Precious Metals Corp. (WPM) - free report >>

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