KGC or TFPM: Which Is the Better Value Stock Right Now?

For investors looking into the Mining - Gold sector, two well-known companies are Kinross Gold (KGC) and Triple Flag Precious Metals (TFPM). This article examines which of these two stocks currently presents a better value opportunity.

To identify attractive value stocks, investors often seek a combination of a strong Zacks Rank along with impressive scores in the Value category from the Style Scores system. The Zacks Rank focuses on companies with positive trends in earnings estimates, while the Style Scores spotlight stocks that possess specific value-related characteristics.

At present, Kinross Gold holds a Zacks Rank of #2 (Buy), indicating a more favorable earnings outlook compared to Triple Flag Precious Metals, which has a Zacks Rank of #3 (Hold). This suggests that KGC has likely experienced a more significant positive shift in its earnings projections than TFPM. Nonetheless, value investors typically consider various metrics beyond just rankings.

Value investors routinely analyze multiple classic metrics to identify companies they believe are undervalued relative to their current share prices. In our analysis, we utilized several key metrics, including the price-to-earnings ratio (P/E), price-to-sales ratio (P/S), earnings yield, and cash flow per share, along with other fundamentals that appeal to value investors.

Currently, KGC displays a forward P/E ratio of 14.17, while TFPM has a significantly higher forward P/E of 30.31. Additionally, KGC boasts a PEG ratio of 0.44, which accounts for a stock's expected earnings growth rate similar to the traditional P/E ratio. In comparison, TFPM's PEG ratio stands at 0.90.

Another important valuation metric for KGC is its price-to-book (P/B) ratio of 1.79. This ratio compares a stock's market value with its book value, which represents total assets minus total liabilities. To contrast, TFPM's P/B ratio is slightly higher at 1.98.

The metrics mentioned above contribute to KGC earning a Value grade of A, while TFPM is assigned a Value grade of D. Given its superior rankings in both the Zacks Rank and Style Scores models, value investors are likely to view KGC as the more appealing option at this moment.

KGC, TFPM, value