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Investors looking for stocks in the Mining - Miscellaneous sector might want to consider either SSR Mining (SSRM) or Wheaton Precious Metals Corp. (WPM). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
SSR Mining and Wheaton Precious Metals Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SSRM likely has seen a stronger improvement to its earnings outlook than WPM has recently. But this is only part of the picture 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 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 12.03, while WPM has a forward P/E of 37.22. We also note that SSRM has a PEG ratio of 0.31. 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. WPM currently has a PEG ratio of 1.86.
Another notable valuation metric for SSRM is its P/B ratio of 0.52. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WPM has a P/B of 4.25.
Based on these metrics and many more, SSRM holds a Value grade of B, while WPM has a Value grade of F.
SSRM has seen stronger estimate revision activity and sports more attractive valuation metrics than WPM, so it seems like value investors will conclude that SSRM is the superior option right now.
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Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report
Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report