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BTG vs. FNV: Which Stock Is the Better Value Option?

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Investors with an interest in Mining - Gold stocks have likely encountered both B2Gold (BTG - Free Report) and Franco-Nevada (FNV - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

B2Gold has a Zacks Rank of #2 (Buy), while Franco-Nevada has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BTG likely has seen a stronger improvement to its earnings outlook than FNV has recently. But this is just one factor that value investors are interested in.

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 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 10.40, while FNV has a forward P/E of 50.40. We also note that BTG has a PEG ratio of 0.52. 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 12.60.

Another notable valuation metric for BTG is its P/B ratio of 2.24. 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 4.63.

These metrics, and several others, help BTG earn a Value grade of A, while FNV has been given a Value grade of F.

BTG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BTG is likely the superior value option right now.


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