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

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Investors with an interest in Fertilizers stocks have likely encountered both Mosaic (MOS - Free Report) and Nutrien (NTR - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Mosaic and Nutrien have a Zacks Rank of # 1 (Strong Buy) right now. 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. But this is only part of the picture 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 5.95, while NTR has a forward P/E of 9.42. We also note that MOS has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NTR currently has a PEG ratio of 1.18.

Another notable valuation metric for MOS is its P/B ratio of 2.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NTR has a P/B of 2.39.

These are just a few of the metrics contributing to MOS's Value grade of B 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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