Yahoo Finance EGO or TFPM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Gold sector might want to consider either Eldorado Gold Corporation (EGO) or Triple Flag Precious Metals (TFPM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Eldorado Gold Corporation and Triple Flag Precious Metals are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that EGO likely has seen a stronger improvement to its earnings outlook than TFPM has recently. But this is only part of the picture 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 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.
EGO currently has a forward P/E ratio of 13.52, while TFPM has a forward P/E of 32.17. We also note that EGO has a PEG ratio of 0.27. 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 0.97.
Another notable valuation metric for EGO is its P/B ratio of 0.84. 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 1.71.
Based on these metrics and many more, EGO holds a Value grade of B, while TFPM has a Value grade of D.
EGO has seen stronger estimate revision activity and sports more attractive valuation metrics than TFPM, so it seems like value investors will conclude that EGO is the superior option right now.
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Eldorado Gold Corporation (EGO) : Free Stock Analysis Report
Triple Flag Precious Metals Corp. (TFPM) : Free Stock Analysis Report
