Iamgold Corporation (NYSE: IAG) and Kinross Gold Corporation (NYSE:KGC) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitabiliy and analyst recommendations.
This table compares Iamgold Corporation and Kinross Gold Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kinross Gold Corporation||-0.13%||2.13%||1.13%|
This is a breakdown of current recommendations for Iamgold Corporation and Kinross Gold Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kinross Gold Corporation||1||5||6||0||2.42|
Iamgold Corporation currently has a consensus price target of $5.75, suggesting a potential upside of 11.00%. Kinross Gold Corporation has a consensus price target of $4.90, suggesting a potential upside of 16.01%. Given Kinross Gold Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Kinross Gold Corporation is more favorable than Iamgold Corporation.
Institutional & Insider Ownership
58.3% of Iamgold Corporation shares are owned by institutional investors. Comparatively, 60.4% of Kinross Gold Corporation shares are owned by institutional investors. 1.0% of Kinross Gold Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Iamgold Corporation and Kinross Gold Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Iamgold Corporation||$1.03 billion||2.34||$330.30 million||($0.04)||-129.50|
|Kinross Gold Corporation||$3.49 billion||1.51||$1.01 billion||$0.00||-422,000.00|
Kinross Gold Corporation has higher revenue and earnings than Iamgold Corporation. Kinross Gold 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.
Volatility and Risk
Iamgold Corporation has a beta of -0.33, meaning that its stock price is 133% less volatile than the S&P 500. Comparatively, Kinross Gold Corporation has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.
Kinross Gold Corporation beats Iamgold Corporation on 12 of the 13 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 Kinross Gold Corporation
Kinross Gold Corporation is a gold mining company. The Company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. The Company’s segments include Fort Knox, Round Mountain, Bald Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. Fort Knox is an open-pit gold mine located in Fairbanks, Alaska. Round Mountain open-pit mine is located in Nye County, Nevada. Bald Mountain open-pit mine is located in Nevada. Kettle River-Buckhorn mine is located in northern Washington State. The Kupol segment includes the Kupol and Dvoinoye mines. Paracatu is a gold mine located in the State of Minas Gerais, Brazil. Maricunga open pit mine is located in Copiapo, Chile. Tasiast mine is located in north-western Mauritania. Chirano is located in southwestern Ghana.
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