Better Buy: Goldcorp Inc. vs. IAMGOLD Corp.
Political uncertainty in Washington and strained relations abroad are just two explanations for gold's more than 13% rise year to date. There's little to suggest that these two concerns will be eased anytime soon, suggesting that the price of gold is bound to rise even more in the months to come. Now, therefore, seems like an ideal time to focus on gold stocks, especially two popular miners, Goldcorp (NYSE: GG) and IAMGOLD (NYSE: IAG).
A cursory glance at the two stocks' price tags suggests that IAMGOLD is currently the better opportunity for investors. According to Morningstar, the stock is trading at 5.7 times trailing earnings -- well below its five-year average P/E of 12.6. Shares of Goldcorp, on the other hand, appear expensive, sporting a 23.9 multiple compared to its five-year average of 20. But this comparison is merely scratching the surface, so let's grab our pickaxes and dig in even deeper.
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Source: Fool.com