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KGC or TFPM: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Mining - Gold sector have probably already heard of Kinross Gold (KGC - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Currently, Kinross Gold has a Zacks Rank of #2 (Buy), while Triple Flag Precious Metals has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KGC likely has seen a stronger improvement to its earnings outlook than TFPM has recently. However, value investors will care about much more than just this.

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.

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.

KGC currently has a forward P/E ratio of 14.17, while TFPM has a forward P/E of 30.31. We also note that KGC has a PEG ratio of 0.44. 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. TFPM currently has a PEG ratio of 0.90.

Another notable valuation metric for KGC is its P/B ratio of 1.79. 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 1.98.

These are just a few of the metrics contributing to KGC's Value grade of A and TFPM's Value grade of D.

KGC sticks out from TFPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that KGC is the better option right now.


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Kinross Gold Corporation (KGC) - free report >>

Triple Flag Precious Metals Corp. (TFPM) - free report >>

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