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KGC or RGLD: Which Is the Better Value Stock Right Now?
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Investors interested in Mining - Gold stocks are likely familiar with Kinross Gold (KGC - Free Report) and Royal Gold (RGLD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, Kinross Gold has a Zacks Rank of #1 (Strong Buy), while Royal Gold has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KGC is likely seeing its earnings outlook improve to a greater extent. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KGC currently has a forward P/E ratio of 13.59, while RGLD has a forward P/E of 22.30. We also note that KGC has a PEG ratio of 0.62. 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. RGLD currently has a PEG ratio of 1.18.
Another notable valuation metric for KGC is its P/B ratio of 2.96. 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, RGLD has a P/B of 3.31.
These are just a few of the metrics contributing to KGC's Value grade of B and RGLD's Value grade of D.
KGC has seen stronger estimate revision activity and sports more attractive valuation metrics than RGLD, so it seems like value investors will conclude that KGC is the superior option right now.
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KGC or RGLD: Which Is the Better Value Stock Right Now?
Investors interested in Mining - Gold stocks are likely familiar with Kinross Gold (KGC - Free Report) and Royal Gold (RGLD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, Kinross Gold has a Zacks Rank of #1 (Strong Buy), while Royal Gold has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KGC is likely seeing its earnings outlook improve to a greater extent. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KGC currently has a forward P/E ratio of 13.59, while RGLD has a forward P/E of 22.30. We also note that KGC has a PEG ratio of 0.62. 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. RGLD currently has a PEG ratio of 1.18.
Another notable valuation metric for KGC is its P/B ratio of 2.96. 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, RGLD has a P/B of 3.31.
These are just a few of the metrics contributing to KGC's Value grade of B and RGLD's Value grade of D.
KGC has seen stronger estimate revision activity and sports more attractive valuation metrics than RGLD, so it seems like value investors will conclude that KGC is the superior option right now.