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SSRM or WPM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of SSR Mining (SSRM - Free Report) and Wheaton Precious Metals Corp. (WPM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
SSR Mining and Wheaton Precious Metals Corp. are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
SSRM currently has a forward P/E ratio of 21.18, while WPM has a forward P/E of 35.26. We also note that SSRM has a PEG ratio of 1.20. 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 9.25.
Another notable valuation metric for SSRM is its P/B ratio of 0.41. 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, WPM has a P/B of 3.08.
These metrics, and several others, help SSRM earn a Value grade of B, while WPM has been given a Value grade of F.
Both SSRM and WPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SSRM is the superior value option right now.
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SSRM or WPM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of SSR Mining (SSRM - Free Report) and Wheaton Precious Metals Corp. (WPM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
SSR Mining and Wheaton Precious Metals Corp. are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
SSRM currently has a forward P/E ratio of 21.18, while WPM has a forward P/E of 35.26. We also note that SSRM has a PEG ratio of 1.20. 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 9.25.
Another notable valuation metric for SSRM is its P/B ratio of 0.41. 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, WPM has a P/B of 3.08.
These metrics, and several others, help SSRM earn a Value grade of B, while WPM has been given a Value grade of F.
Both SSRM and WPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SSRM is the superior value option right now.