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SSRM vs. MP: Which Stock Is the Better Value Option?

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Investors with an interest in Mining - Miscellaneous stocks have likely encountered both SSR Mining (SSRM - Free Report) and MP Materials Corp. (MP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

SSR Mining has a Zacks Rank of #2 (Buy), while MP Materials Corp. has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SSRM 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.

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 29.45, while MP has a forward P/E of 116.78. We also note that SSRM has a PEG ratio of 1.67. 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. MP currently has a PEG ratio of 3.62.

Another notable valuation metric for SSRM is its P/B ratio of 0.25. 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, MP has a P/B of 2.08.

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

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


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MP Materials Corp. (MP) - free report >>

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