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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 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 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 sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SSRM is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 12.28, while WPM has a forward P/E of 43.33. We also note that SSRM has a PEG ratio of 0.69. 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 2.01.
Another notable valuation metric for SSRM is its P/B ratio of 0.27. 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, WPM has a P/B of 3.56.
These are just a few of the metrics contributing to SSRM's Value grade of A and WPM's Value grade of F.
SSRM sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SSRM is the better option right now.
Image: Bigstock
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 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 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 sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SSRM is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 12.28, while WPM has a forward P/E of 43.33. We also note that SSRM has a PEG ratio of 0.69. 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 2.01.
Another notable valuation metric for SSRM is its P/B ratio of 0.27. 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, WPM has a P/B of 3.56.
These are just a few of the metrics contributing to SSRM's Value grade of A and WPM's Value grade of F.
SSRM sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SSRM is the better option right now.