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KGC vs. TFPM: Which Stock Is the Better Value Option?
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Investors with an interest in Mining - Gold stocks have likely encountered both 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies 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. But this is just one piece of the puzzle for value investors.
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 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.
KGC currently has a forward P/E ratio of 14.74, while TFPM has a forward P/E of 30.62. We also note that KGC has a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TFPM currently has a PEG ratio of 0.94.
Another notable valuation metric for KGC is its P/B ratio of 1.64. 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 1.88.
These metrics, and several others, help KGC earn a Value grade of A, while TFPM has been given a Value grade of D.
KGC has seen stronger estimate revision activity and sports more attractive valuation metrics than TFPM, so it seems like value investors will conclude that KGC is the superior option right now.
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KGC vs. TFPM: Which Stock Is the Better Value Option?
Investors with an interest in Mining - Gold stocks have likely encountered both 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies 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. But this is just one piece of the puzzle for value investors.
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 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.
KGC currently has a forward P/E ratio of 14.74, while TFPM has a forward P/E of 30.62. We also note that KGC has a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TFPM currently has a PEG ratio of 0.94.
Another notable valuation metric for KGC is its P/B ratio of 1.64. 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 1.88.
These metrics, and several others, help KGC earn a Value grade of A, while TFPM has been given a Value grade of D.
KGC has seen stronger estimate revision activity and sports more attractive valuation metrics than TFPM, so it seems like value investors will conclude that KGC is the superior option right now.