Yahoo Finance ARREF 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 Amerigo Resources (ARREF) and 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.
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 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 means that ARREF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
ARREF currently has a forward P/E ratio of 10.82, while SCCO has a forward P/E of 19.55. We also note that ARREF has a PEG ratio of 0.54. 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 16.29.
Another notable valuation metric for ARREF is its P/B ratio of 1.66. 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 7.29.
These metrics, and several others, help ARREF earn a Value grade of A, while SCCO has been given a Value grade of D.
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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Amerigo Resources Ltd. (ARREF) : Free Stock Analysis Report
Southern Copper Corporation (SCCO) : Free Stock Analysis Report
