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EGO vs. FNV: Which Stock Is the Better Value Option?
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Investors interested in Mining - Gold stocks are likely familiar with Eldorado Gold Corporation (EGO - 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.
Currently, Eldorado Gold Corporation has a Zacks Rank of #2 (Buy), while Franco-Nevada has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EGO likely has seen a stronger improvement to its earnings outlook than FNV has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EGO currently has a forward P/E ratio of 16.70, while FNV has a forward P/E of 40.61. We also note that EGO has a PEG ratio of 5.42. 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 6.14.
Another notable valuation metric for EGO is its P/B ratio of 0.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FNV has a P/B of 4.01.
These are just a few of the metrics contributing to EGO's Value grade of B and FNV's Value grade of F.
EGO 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 EGO is likely the superior value option right now.
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EGO vs. FNV: Which Stock Is the Better Value Option?
Investors interested in Mining - Gold stocks are likely familiar with Eldorado Gold Corporation (EGO - 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.
Currently, Eldorado Gold Corporation has a Zacks Rank of #2 (Buy), while Franco-Nevada has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EGO likely has seen a stronger improvement to its earnings outlook than FNV has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EGO currently has a forward P/E ratio of 16.70, while FNV has a forward P/E of 40.61. We also note that EGO has a PEG ratio of 5.42. 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 6.14.
Another notable valuation metric for EGO is its P/B ratio of 0.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FNV has a P/B of 4.01.
These are just a few of the metrics contributing to EGO's Value grade of B and FNV's Value grade of F.
EGO 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 EGO is likely the superior value option right now.