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GLNCY vs. LYSDY: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Glencore PLC (GLNCY - Free Report) and Lynas Corp. (LYSDY - 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.

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.

Right now, Glencore PLC is sporting a Zacks Rank of #1 (Strong Buy), while Lynas Corp. has a Zacks Rank of #3 (Hold). This means that GLNCY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

GLNCY currently has a forward P/E ratio of 13.13, while LYSDY has a forward P/E of 53.18. We also note that GLNCY has a PEG ratio of 3.09. 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. LYSDY currently has a PEG ratio of 11.39.

Another notable valuation metric for GLNCY is its P/B ratio of 1.83. 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, LYSDY has a P/B of 2.50.

These are just a few of the metrics contributing to GLNCY's Value grade of A and LYSDY's Value grade of F.

GLNCY stands above LYSDY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GLNCY is the superior value option right now.


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