Back to top

Image: Bigstock

LUNMF vs. FCX: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Lundin Mining (LUNMF - Free Report) or Freeport-McMoRan (FCX - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Lundin Mining and Freeport-McMoRan are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that LUNMF likely has seen a stronger improvement to its earnings outlook than FCX has recently. But this is just one factor that value investors are interested in.

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.

LUNMF currently has a forward P/E ratio of 13.95, while FCX has a forward P/E of 29.90. We also note that LUNMF has a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FCX currently has a PEG ratio of 2.11.

Another notable valuation metric for LUNMF is its P/B ratio of 1.42. 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, FCX has a P/B of 2.63.

These metrics, and several others, help LUNMF earn a Value grade of A, while FCX has been given a Value grade of C.

LUNMF has seen stronger estimate revision activity and sports more attractive valuation metrics than FCX, so it seems like value investors will conclude that LUNMF is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Freeport-McMoRan Inc. (FCX) - free report >>

Lundin Mining Corp. (LUNMF) - free report >>

Published in