Investors interested in Mining - Gold stocks are likely familiar with Newmont Corporation (NEM) and Triple Flag Precious Metals (TFPM). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, both Newmont Corporation and Triple Flag Precious Metals are sporting a Zacks Rank of #1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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.
NEM currently has a forward P/E ratio of 13.44, while TFPM has a forward P/E of 30.67. We also note that NEM has a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TFPM currently has a PEG ratio of 1.16.
Another notable valuation metric for NEM 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 2.77.
These are just a few of the metrics contributing to NEM's Value grade of B and TFPM's Value grade of F.
Both NEM and TFPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NEM is the superior value option right now.
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Newmont Corporation (NEM): 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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