Investors interested in stocks from the Mining - Gold sector have probably already heard of Barrick Mining (B) and Triple Flag Precious Metals (TFPM). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Barrick Mining and Triple Flag Precious Metals are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that B likely has seen a stronger improvement to its earnings outlook than TFPM has recently. But this is just one factor that value investors are interested in.
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 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.
B currently has a forward P/E ratio of 18.41, while TFPM has a forward P/E of 35.10. We also note that B has a PEG ratio of 0.42. 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 B is its P/B ratio of 2.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TFPM has a P/B of 3.49.
Based on these metrics and many more, B holds a Value grade of B, while TFPM has a Value grade of D.
B has seen stronger estimate revision activity and sports more attractive valuation metrics than TFPM, so it seems like value investors will conclude that B is the superior 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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