Yahoo Finance RS or LYSDY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Reliance (RS) and Lynas Corp. (LYSDY). 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.
Right now, Reliance is sporting a Zacks Rank of #2 (Buy), while Lynas Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RS is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
RS currently has a forward P/E ratio of 15.31, while LYSDY has a forward P/E of 64.09. We also note that RS has a PEG ratio of 6.68. 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 13.72.
Another notable valuation metric for RS is its P/B ratio of 2.17. 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, LYSDY has a P/B of 3.01.
These are just a few of the metrics contributing to RS's Value grade of B and LYSDY's Value grade of F.
RS has seen stronger estimate revision activity and sports more attractive valuation metrics than LYSDY, so it seems like value investors will conclude that RS is the superior option right now.
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Reliance, Inc. (RS) : Free Stock Analysis Report
Lynas Corp. (LYSDY) : Free Stock Analysis Report
