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KGC vs. FNV: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Mining - Gold sector have probably already heard of Kinross Gold (KGC - Free Report) and Franco-Nevada (FNV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Kinross Gold and Franco-Nevada are sporting a Zacks Rank of #1 (Strong 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 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 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.
KGC currently has a forward P/E ratio of 17.43, while FNV has a forward P/E of 40.38. We also note that KGC has a PEG ratio of 0.51. 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 1.86.
Another notable valuation metric for KGC is its P/B ratio of 3.98. 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 5.94.
These metrics, and several others, help KGC earn a Value grade of B, while FNV has been given a Value grade of F.
Both KGC and FNV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KGC is the superior value option right now.
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KGC vs. FNV: Which Stock Is the Better Value Option?
Investors interested in stocks from the Mining - Gold sector have probably already heard of Kinross Gold (KGC - Free Report) and Franco-Nevada (FNV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Kinross Gold and Franco-Nevada are sporting a Zacks Rank of #1 (Strong 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 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 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.
KGC currently has a forward P/E ratio of 17.43, while FNV has a forward P/E of 40.38. We also note that KGC has a PEG ratio of 0.51. 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 1.86.
Another notable valuation metric for KGC is its P/B ratio of 3.98. 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 5.94.
These metrics, and several others, help KGC earn a Value grade of B, while FNV has been given a Value grade of F.
Both KGC and FNV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KGC is the superior value option right now.