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IMPUY or WPM: Which Is the Better Value Stock Right Now?

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Zacks Equity Research
·2 min read
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Investors with an interest in Mining - Miscellaneous stocks have likely encountered both Impala Platinum Holdings Ltd. (IMPUY) and 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Impala Platinum Holdings Ltd. is sporting a Zacks Rank of #1 (Strong Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IMPUY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

IMPUY currently has a forward P/E ratio of 5.52, while WPM has a forward P/E of 27.09. We also note that IMPUY has a PEG ratio of 0.70. 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. WPM currently has a PEG ratio of 5.42.

Another notable valuation metric for IMPUY is its P/B ratio of 3.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WPM has a P/B of 3.35.

These metrics, and several others, help IMPUY earn a Value grade of B, while WPM has been given a Value grade of D.

IMPUY stands above WPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IMPUY is the superior value option right now.


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Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report
 
Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report
 
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