Advertisement
UK markets open in 3 hours 45 minutes

  • NIKKEI 225

    36,818.81
    -1,260.89 (-3.31%)
     

  • HANG SENG

    16,051.43
    -334.44 (-2.04%)
     

  • CRUDE OIL

    85.44
    +2.71 (+3.28%)
     

  • GOLD FUTURES

    2,415.40
    +17.40 (+0.73%)
     

  • DOW

    37,775.38
    +22.07 (+0.06%)
     

  • Bitcoin GBP

    49,581.61
    -416.57 (-0.83%)
     

  • CMC Crypto 200

    1,257.37
    +371.83 (+39.57%)
     

  • NASDAQ Composite

    15,601.50
    -81.87 (-0.52%)
     

  • UK FTSE All Share

    4,290.02
    +17.00 (+0.40%)
     
Money:

Best mortgage deals of the week

As possibility of multiple interest rate cuts dwindle here's what banks and building societies are offering

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

Zacks Equity Research

Investors interested in stocks from the Mining - Gold sector have probably already heard of B2Gold (BTG) and Agnico Eagle Mines (AEM). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

B2Gold and Agnico Eagle Mines are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BTG is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

ADVERTISEMENT

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.

BTG currently has a forward P/E ratio of 15.39, while AEM has a forward P/E of 61.03. We also note that BTG has a PEG ratio of 5.68. 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. AEM currently has a PEG ratio of 61.03.

Another notable valuation metric for BTG is its P/B ratio of 1.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AEM has a P/B of 2.90.

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

BTG has seen stronger estimate revision activity and sports more attractive valuation metrics than AEM, so it seems like value investors will conclude that BTG is the superior option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
B2Gold Corp (BTG) : Free Stock Analysis Report
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research