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GLNCY vs. LYSDY: Which Stock Is the Better Value Option?

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Investors interested in Mining - Miscellaneous stocks are likely familiar with Glencore PLC (GLNCY - Free Report) and Lynas Corp. (LYSDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Glencore PLC has a Zacks Rank of #2 (Buy), while Lynas Corp. has a Zacks Rank of #4 (Sell) right now. 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 just one piece of the puzzle 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GLNCY currently has a forward P/E ratio of 13.72, while LYSDY has a forward P/E of 27.54. We also note that GLNCY has a PEG ratio of 3.40. 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. LYSDY currently has a PEG ratio of 5.90.

Another notable valuation metric for GLNCY is its P/B ratio of 1.97. 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 2.77.

Based on these metrics and many more, GLNCY holds a Value grade of A, while LYSDY has a 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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