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MOS vs. NTR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Fertilizers sector might want to consider either Mosaic (MOS - Free Report) or Nutrien (NTR - 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.

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 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.

Currently, both Mosaic and Nutrien are holding a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MOS currently has a forward P/E ratio of 7.37, while NTR has a forward P/E of 13.52. We also note that MOS has a PEG ratio of 1.05. 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. NTR currently has a PEG ratio of 1.69.

Another notable valuation metric for MOS is its P/B ratio of 1.30. 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, NTR has a P/B of 1.59.

These are just a few of the metrics contributing to MOS's Value grade of A and NTR's Value grade of C.

Both MOS and NTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MOS is the superior value option right now.


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