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CGAU 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 Centerra Gold Inc. (CGAU - Free Report) and Franco-Nevada (FNV - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Centerra Gold Inc. and Franco-Nevada are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
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.
CGAU currently has a forward P/E ratio of 9.45, while FNV has a forward P/E of 39.41. We also note that CGAU has a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FNV currently has a PEG ratio of 4.09.
Another notable valuation metric for CGAU is its P/B ratio of 0.82. 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, FNV has a P/B of 4.87.
These are just a few of the metrics contributing to CGAU's Value grade of A and FNV's Value grade of F.
Both CGAU and FNV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CGAU is the superior value option right now.
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CGAU vs. FNV: Which Stock Is the Better Value Option?
Investors with an interest in Mining - Gold stocks have likely encountered both Centerra Gold Inc. (CGAU - Free Report) and Franco-Nevada (FNV - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Centerra Gold Inc. and Franco-Nevada are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
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.
CGAU currently has a forward P/E ratio of 9.45, while FNV has a forward P/E of 39.41. We also note that CGAU has a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FNV currently has a PEG ratio of 4.09.
Another notable valuation metric for CGAU is its P/B ratio of 0.82. 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, FNV has a P/B of 4.87.
These are just a few of the metrics contributing to CGAU's Value grade of A and FNV's Value grade of F.
Both CGAU and FNV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CGAU is the superior value option right now.