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GOLD vs. TFPM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Mining - Gold sector have probably already heard of Barrick Gold and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Barrick Gold and Triple Flag Precious Metals are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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 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.
GOLD currently has a forward P/E ratio of 15.69, while TFPM has a forward P/E of 30.67. We also note that GOLD has a PEG ratio of 0.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TFPM currently has a PEG ratio of 1.13.
Another notable valuation metric for GOLD is its P/B ratio of 1.08. 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, TFPM has a P/B of 1.94.
These metrics, and several others, help GOLD earn a Value grade of A, while TFPM has been given a Value grade of D.
Both GOLD and TFPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GOLD is the superior value option right now.
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GOLD vs. TFPM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Mining - Gold sector have probably already heard of Barrick Gold and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Barrick Gold and Triple Flag Precious Metals are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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 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.
GOLD currently has a forward P/E ratio of 15.69, while TFPM has a forward P/E of 30.67. We also note that GOLD has a PEG ratio of 0.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TFPM currently has a PEG ratio of 1.13.
Another notable valuation metric for GOLD is its P/B ratio of 1.08. 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, TFPM has a P/B of 1.94.
These metrics, and several others, help GOLD earn a Value grade of A, while TFPM has been given a Value grade of D.
Both GOLD and TFPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GOLD is the superior value option right now.