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

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  • WPM
  • IMPUF

Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Impala Platinum Holdings Ltd. (IMPUY) and Wheaton Precious Metals Corp. (WPM). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Impala Platinum Holdings Ltd. has a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold). This means that IMPUY'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 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

IMPUY currently has a forward P/E ratio of 5.60, while WPM has a forward P/E of 31.19. We also note that IMPUY has a PEG ratio of 0.99. 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 6.24.

Another notable valuation metric for IMPUY is its P/B ratio of 1.70. 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 3.20.

Based on these metrics and many more, IMPUY holds a Value grade of A, while WPM has a Value grade of D.

IMPUY sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that IMPUY is the better 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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