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SSRM or WPM: Which Is the Better Value Stock Right Now?
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Investors with an interest in Mining - Miscellaneous stocks have likely encountered both SSR Mining (SSRM - Free Report) and Wheaton Precious Metals Corp. (WPM - 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.
SSR Mining has a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold) 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 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SSRM currently has a forward P/E ratio of 8.97, while WPM has a forward P/E of 42.74. We also note that SSRM has a PEG ratio of 0.51. 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. WPM currently has a PEG ratio of 2.20.
Another notable valuation metric for SSRM is its P/B ratio of 0.27. 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, WPM has a P/B of 3.74.
Based on these metrics and many more, SSRM holds a Value grade of A, while WPM has a Value grade of F.
SSRM stands above WPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SSRM is the superior value option right now.
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SSRM or WPM: Which Is the Better Value Stock Right Now?
Investors with an interest in Mining - Miscellaneous stocks have likely encountered both SSR Mining (SSRM - Free Report) and Wheaton Precious Metals Corp. (WPM - 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.
SSR Mining has a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold) 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 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SSRM currently has a forward P/E ratio of 8.97, while WPM has a forward P/E of 42.74. We also note that SSRM has a PEG ratio of 0.51. 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. WPM currently has a PEG ratio of 2.20.
Another notable valuation metric for SSRM is its P/B ratio of 0.27. 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, WPM has a P/B of 3.74.
Based on these metrics and many more, SSRM holds a Value grade of A, while WPM has a Value grade of F.
SSRM stands above WPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SSRM is the superior value option right now.