Back to top

Image: Bigstock

BTG vs. TFPM: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in stocks from the Mining - Gold sector have probably already heard of B2Gold (BTG - Free Report) 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.

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 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 B2Gold and Triple Flag Precious Metals are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

BTG currently has a forward P/E ratio of 10.71, while TFPM has a forward P/E of 34.83. We also note that BTG has a PEG ratio of 0.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TFPM currently has a PEG ratio of 1.05.

Another notable valuation metric for BTG is its P/B ratio of 0.93. 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, TFPM has a P/B of 1.83.

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

Both BTG and TFPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BTG is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


B2Gold Corp (BTG) - free report >>

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

Published in