Yahoo Finance LUNMF or SCCO: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Non Ferrous sector have probably already heard of Lundin Mining (LUNMF) and Southern Copper (SCCO). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lundin Mining has a Zacks Rank of #2 (Buy), while Southern Copper 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 LUNMF is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
LUNMF currently has a forward P/E ratio of 13.80, while SCCO has a forward P/E of 29.89. We also note that LUNMF has a PEG ratio of 0.69. 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. SCCO currently has a PEG ratio of 3.38.
Another notable valuation metric for LUNMF is its P/B ratio of 1.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SCCO has a P/B of 12.01.
These metrics, and several others, help LUNMF earn a Value grade of B, while SCCO has been given a Value grade of F.
LUNMF stands above SCCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LUNMF is the superior value option right now.
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Lundin Mining Corp. (LUNMF) : Free Stock Analysis Report
Southern Copper Corporation (SCCO) : Free Stock Analysis Report
