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

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Investors with an interest in Mining - Gold stocks have likely encountered both Iamgold (IAG - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Iamgold and Triple Flag Precious Metals have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 9.40, while TFPM has a forward P/E of 26.91. We also note that IAG has a PEG ratio of 0.33. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TFPM currently has a PEG ratio of 1.05.

Another notable valuation metric for IAG is its P/B ratio of 1.10. 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, TFPM has a P/B of 2.37.

Based on these metrics and many more, IAG holds a Value grade of A, while TFPM has 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 report >>

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