Yahoo Finance IAG vs. TFPM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Mining - Gold sector might want to consider either Iamgold (IAG) or 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both Iamgold and Triple Flag Precious Metals are holding a Zacks Rank of # 2 (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 piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
IAG currently has a forward P/E ratio of 18.21, while TFPM has a forward P/E of 34.92. We also note that IAG has a PEG ratio of 0.45. 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 2.29.
Another notable valuation metric for IAG is its P/B ratio of 0.95. 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 1.86.
These metrics, and several others, help IAG earn a Value grade of A, while TFPM has been given a Value grade of D.
Both IAG and TFPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IAG is the superior value option right now.
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Iamgold Corporation (IAG) : Free Stock Analysis Report
Triple Flag Precious Metals Corp. (TFPM) : Free Stock Analysis Report
