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TECK 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 Teck Resources Ltd (TECK - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Teck Resources Ltd has a Zacks Rank of #2 (Buy), while MP Materials Corp. has a Zacks Rank of #4 (Sell) right now. This means that TECK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
TECK currently has a forward P/E ratio of 9.68, while MP has a forward P/E of 30.44. We also note that TECK has a PEG ratio of 1.63. 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. MP currently has a PEG ratio of 1.87.
Another notable valuation metric for TECK is its P/B ratio of 1.06. 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 4.58.
These are just a few of the metrics contributing to TECK's Value grade of A and MP's Value grade of F.
TECK stands above MP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TECK is the superior value option right now.
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TECK vs. MP: Which Stock Is the Better Value Option?
Investors with an interest in Mining - Miscellaneous stocks have likely encountered both Teck Resources Ltd (TECK - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Teck Resources Ltd has a Zacks Rank of #2 (Buy), while MP Materials Corp. has a Zacks Rank of #4 (Sell) right now. This means that TECK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
TECK currently has a forward P/E ratio of 9.68, while MP has a forward P/E of 30.44. We also note that TECK has a PEG ratio of 1.63. 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. MP currently has a PEG ratio of 1.87.
Another notable valuation metric for TECK is its P/B ratio of 1.06. 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 4.58.
These are just a few of the metrics contributing to TECK's Value grade of A and MP's Value grade of F.
TECK stands above MP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TECK is the superior value option right now.