雅虎香港財經 ARREF or SCCO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Amerigo Resources (ARREF) or Southern Copper (SCCO). But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Currently, both Amerigo Resources and Southern Copper are holding a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ARREF currently has a forward P/E ratio of 7.31, while SCCO has a forward P/E of 25.58. We also note that ARREF has a PEG ratio of 0.37. 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. SCCO currently has a PEG ratio of 1.18.
Another notable valuation metric for ARREF is its P/B ratio of 1.83. 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, SCCO has a P/B of 11.09.
These metrics, and several others, help ARREF earn a Value grade of A, while SCCO has been given a Value grade of F.
Both ARREF and SCCO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARREF is the superior value option right now.
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Amerigo Resources Ltd. (ARREF) : Free Stock Analysis Report
Southern Copper Corporation (SCCO) : Free Stock Analysis Report
