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

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Investors looking for stocks in the Mining - Gold sector might want to consider either B2Gold (BTG - Free Report) or Triple Flag Precious Metals (TFPM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, B2Gold is sporting a Zacks Rank of #2 (Buy), while Triple Flag Precious Metals has a Zacks Rank of #3 (Hold). This means that BTG'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 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.

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.

BTG currently has a forward P/E ratio of 9.22, while TFPM has a forward P/E of 28.59. We also note that BTG has a PEG ratio of 0.39. 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 0.88.

Another notable valuation metric for BTG is its P/B ratio of 0.91. 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 1.59.

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

BTG stands above TFPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BTG is the superior value option right now.


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