BTG or FNV: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Gold sector have probably already heard of B2Gold (BTG) and Franco-Nevada (FNV). But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
B2Gold and Franco-Nevada are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BTG is likely seeing its earnings outlook improve to a greater extent. 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.
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.
BTG currently has a forward P/E ratio of 10.75, while FNV has a forward P/E of 39.65. We also note that BTG has a PEG ratio of 1.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FNV currently has a PEG ratio of 6.
Another notable valuation metric for BTG is its P/B ratio of 0.93. 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, FNV has a P/B of 4.16.
These are just a few of the metrics contributing to BTG's Value grade of A and FNV's Value grade of F.
BTG has seen stronger estimate revision activity and sports more attractive valuation metrics than FNV, so it seems like value investors will conclude that BTG is the superior option right now.
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B2Gold Corp (BTG) : Free Stock Analysis Report
Franco-Nevada Corporation (FNV) : Free Stock Analysis Report