Investors with an interest in Mining - Gold stocks have likely encountered both Gold Fields (GFI) and Franco-Nevada (FNV). 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.

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.

Currently, Gold Fields has a Zacks Rank of #1 (Strong Buy), while Franco-Nevada 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 GFI is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

GFI currently has a forward P/E ratio of 9.59, while FNV has a forward P/E of 35.68. We also note that GFI has a PEG ratio of 0.31. 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 9.88.

Another notable valuation metric for GFI is its P/B ratio of 3.47. 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, FNV has a P/B of 4.56.

These metrics, and several others, help GFI earn a Value grade of B, while FNV has been given a Value grade of F.

GFI stands above FNV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GFI is the superior value 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

Gold Fields Limited (GFI) : Free Stock Analysis Report

Franco-Nevada Corporation (FNV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research