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ARREF vs. SCCO: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Mining - Non Ferrous sector have probably already heard of Amerigo Resources (ARREF - Free Report) and Southern Copper (SCCO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Amerigo Resources has a Zacks Rank of #2 (Buy), while Southern Copper has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ARREF is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
ARREF currently has a forward P/E ratio of 6.49, while SCCO has a forward P/E of 23.08. We also note that ARREF has a PEG ratio of 0.32. 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. SCCO currently has a PEG ratio of 1.02.
Another notable valuation metric for ARREF 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, SCCO has a P/B of 9.05.
These are just a few of the metrics contributing to ARREF's Value grade of A and SCCO's Value grade of C.
ARREF sticks out from SCCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARREF is the better option right now.
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ARREF vs. SCCO: Which Stock Is the Better Value Option?
Investors interested in stocks from the Mining - Non Ferrous sector have probably already heard of Amerigo Resources (ARREF - Free Report) and Southern Copper (SCCO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Currently, Amerigo Resources has a Zacks Rank of #2 (Buy), while Southern Copper has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ARREF is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
ARREF currently has a forward P/E ratio of 6.49, while SCCO has a forward P/E of 23.08. We also note that ARREF has a PEG ratio of 0.32. 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. SCCO currently has a PEG ratio of 1.02.
Another notable valuation metric for ARREF 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, SCCO has a P/B of 9.05.
These are just a few of the metrics contributing to ARREF's Value grade of A and SCCO's Value grade of C.
ARREF sticks out from SCCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARREF is the better option right now.