Yahoo Finance EGO or AGI: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Gold sector have probably already heard of Eldorado Gold Corporation (EGO) and Alamos Gold (AGI). 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, Eldorado Gold Corporation has a Zacks Rank of #2 (Buy), while Alamos 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 EGO is likely seeing its earnings outlook improve to a greater extent. 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.
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.
EGO currently has a forward P/E ratio of 13.76, while AGI has a forward P/E of 23.27. We also note that EGO has a PEG ratio of 0.27. 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. AGI currently has a PEG ratio of 0.74.
Another notable valuation metric for EGO is its P/B ratio of 0.85. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AGI has a P/B of 2.17.
These metrics, and several others, help EGO earn a Value grade of A, while AGI has been given a Value grade of C.
EGO sticks out from AGI in both our Zacks Rank and Style Scores models, so value investors will likely feel that EGO is the better option right now.
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Eldorado Gold Corporation (EGO) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
