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BTG or AEM: Which Is the Better Value Stock Right Now?

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Investors with an interest in Mining - Gold stocks have likely encountered both B2Gold (BTG - Free Report) and Agnico Eagle Mines (AEM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both B2Gold and Agnico Eagle Mines 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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

BTG currently has a forward P/E ratio of 16.22, while AEM has a forward P/E of 64.46. We also note that BTG has a PEG ratio of 5.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AEM currently has a PEG ratio of 64.46.

Another notable valuation metric for BTG is its P/B ratio of 2.05. 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, AEM has a P/B of 3.07.

These are just a few of the metrics contributing to BTG's Value grade of B and AEM's Value grade of D.

Both BTG and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BTG is the superior value option right now.


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