Investors interested in Mining - Gold stocks are likely familiar with Barrick Mining (B) and Triple Flag Precious Metals (TFPM). But which of these two stocks presents investors with the better value opportunity right now? 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.
Barrick Mining and Triple Flag Precious Metals are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that B's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
B currently has a forward P/E ratio of 11.05, while TFPM has a forward P/E of 28.62. We also note that B has a PEG ratio of 0.34. 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. TFPM currently has a PEG ratio of 1.08.
Another notable valuation metric for B is its P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TFPM has a P/B of 2.69.
These metrics, and several others, help B earn a Value grade of A, while TFPM has been given a Value grade of D.
B stands above TFPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that B is the superior value option right now.
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Barrick Mining Corporation (B): Free Stock Analysis Report Triple Flag Precious Metals Corp. (TFPM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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