Iamgold Corporation (NYSE: IAG) and Newmont Mining Corporation (NYSE:NEM) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Newmont Mining Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Iamgold Corporation does not pay a dividend. Newmont Mining Corporation pays out -22.2% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for Iamgold Corporation and Newmont Mining Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Newmont Mining Corporation||1||5||11||0||2.59|
Iamgold Corporation currently has a consensus target price of $5.85, suggesting a potential upside of 2.63%. Newmont Mining Corporation has a consensus target price of $41.93, suggesting a potential upside of 17.03%. Given Newmont Mining Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Newmont Mining Corporation is more favorable than Iamgold Corporation.
This table compares Iamgold Corporation and Newmont Mining Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Newmont Mining Corporation||-6.73%||6.67%||3.82%|
Earnings & Valuation
This table compares Iamgold Corporation and Newmont Mining Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Iamgold Corporation||$1.07 billion||2.48||$857.40 million||$1.07||5.33|
|Newmont Mining Corporation||$7.11 billion||2.69||$2.76 billion||($0.90)||-39.81|
Newmont Mining Corporation has higher revenue and earnings than Iamgold Corporation. Newmont Mining Corporation is trading at a lower price-to-earnings ratio than Iamgold Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
57.3% of Iamgold Corporation shares are owned by institutional investors. Comparatively, 82.2% of Newmont Mining Corporation shares are owned by institutional investors. 0.3% of Newmont Mining Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Iamgold Corporation has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, Newmont Mining Corporation has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
Newmont Mining Corporation beats Iamgold Corporation on 13 of the 16 factors compared between the two stocks.
About Iamgold Corporation
IAMGOLD Corporation (IAMGOLD) is engaged primarily in the exploration for, and the development and production of, mineral resource properties throughout the world. Through its holdings, IAMGOLD has interests in various operations, exploration and development properties. IAMGOLD is a mid-tier mining company with approximately four operating gold mines on over three continents. The Company’s gold mine segment is divided into geographic segments, such as Burkina Faso – Essakane mine; Suriname-Rosebel mine; Canada-Doyon division, which includes the Westwood mine and the Doyon mine, and Joint ventures (Mali)-Sadiola mine (41%) and Yatela mine (40%). The Company’s non-gold segments are divided into Exploration and evaluation, and Corporate, which includes royalty interests located in Canada and investments in associates and joint ventures. In Canada, the Company owns the Westwood mine in Quebec and the Cote Gold project, a development project located in Ontario.
About Newmont Mining Corporation
Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company’s segments include North America, South America, Asia Pacific and Africa. The Company’s North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in the state of Nevada, and Cripple Creek &Victor (CC&V) in the state of Colorado, in the United States. The Company’s South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Company’s Asia Pacific segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Company’s Africa segment consists primarily of Ahafo and Akyem in Ghana. As of December 31, 2016, it had gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles (59,000 square kilometers).
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