We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KGC vs. AGI: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Mining - Gold sector might want to consider either Kinross Gold (KGC - Free Report) or Alamos Gold (AGI - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Kinross Gold has a Zacks Rank of #1 (Strong Buy), while Alamos Gold has a Zacks Rank of #3 (Hold) right now. This means that KGC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KGC currently has a forward P/E ratio of 15.81, while AGI has a forward P/E of 23.73. We also note that KGC has a PEG ratio of 0.53. 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. AGI currently has a PEG ratio of 0.77.
Another notable valuation metric for KGC is its P/B ratio of 1.73. 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, AGI has a P/B of 2.29.
These are just a few of the metrics contributing to KGC's Value grade of A and AGI's Value grade of C.
KGC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KGC is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
KGC vs. AGI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Mining - Gold sector might want to consider either Kinross Gold (KGC - Free Report) or Alamos Gold (AGI - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Kinross Gold has a Zacks Rank of #1 (Strong Buy), while Alamos Gold has a Zacks Rank of #3 (Hold) right now. This means that KGC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KGC currently has a forward P/E ratio of 15.81, while AGI has a forward P/E of 23.73. We also note that KGC has a PEG ratio of 0.53. 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. AGI currently has a PEG ratio of 0.77.
Another notable valuation metric for KGC is its P/B ratio of 1.73. 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, AGI has a P/B of 2.29.
These are just a few of the metrics contributing to KGC's Value grade of A and AGI's Value grade of C.
KGC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KGC is likely the superior value option right now.