Yahoo Finance GLNCY or LYSDY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Glencore PLC (GLNCY) and Lynas Corp. (LYSDY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Glencore PLC has a Zacks Rank of #2 (Buy), while Lynas Corp. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GLNCY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
GLNCY currently has a forward P/E ratio of 13.83, while LYSDY has a forward P/E of 58.77. We also note that GLNCY has a PEG ratio of 3.25. 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. LYSDY currently has a PEG ratio of 12.59.
Another notable valuation metric for GLNCY is its P/B ratio of 1.89. 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, LYSDY has a P/B of 2.76.
These are just a few of the metrics contributing to GLNCY's Value grade of A and LYSDY's Value grade of F.
GLNCY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GLNCY is likely the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Glencore PLC (GLNCY) : Free Stock Analysis Report
Lynas Corp. (LYSDY) : Free Stock Analysis Report
