Tahoe Resources (NYSE:TAHO) and Barrick Gold (NYSE:GOLD) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Barrick Gold pays an annual dividend of $0.28 per share and has a dividend yield of 2.2%. Tahoe Resources does not pay a dividend. Barrick Gold pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barrick Gold has raised its dividend for 4 consecutive years.
This is a breakdown of current ratings and recommmendations for Tahoe Resources and Barrick Gold, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tahoe Resources currently has a consensus price target of $5.00, suggesting a potential upside of 37.36%. Barrick Gold has a consensus price target of $14.50, suggesting a potential upside of 15.08%. Given Tahoe Resources’ higher probable upside, equities research analysts clearly believe Tahoe Resources is more favorable than Barrick Gold.
Institutional and Insider Ownership
68.6% of Tahoe Resources shares are owned by institutional investors. Comparatively, 41.8% of Barrick Gold shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Tahoe Resources and Barrick Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Tahoe Resources has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Barrick Gold has a beta of -0.55, meaning that its share price is 155% less volatile than the S&P 500.
Valuation & Earnings
This table compares Tahoe Resources and Barrick Gold’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tahoe Resources||$733.60 million||1.55||$81.79 million||$0.27||13.48|
|Barrick Gold||$7.24 billion||3.05||-$1.55 billion||$0.35||36.00|
Tahoe Resources has higher earnings, but lower revenue than Barrick Gold. Tahoe Resources is trading at a lower price-to-earnings ratio than Barrick Gold, indicating that it is currently the more affordable of the two stocks.
Barrick Gold beats Tahoe Resources on 10 of the 15 factors compared between the two stocks.
Tahoe Resources Company Profile
Tahoe Resources Inc., together with its subsidiaries, acquires, explores for, develops, and operates mineral properties in the Americas. It explores for silver, gold, lead, zinc, and copper deposits, as well as precious metals assets. The company holds interest in the La Arena gold mine located in the Huamachuco district of northern Peru; Shahuindo mine located in the province of Cajabamba in northern Peru; and La Arena II, a copper-gold porphyry deposit located in Peru. It also holds interest in the Timmins mines, including the Bell Creek and Timmins West mines, the Fenn-Gib project, the Juby project, the Vogel project, and the Gold River project located in Timmins, Ontario. The company was formerly known as CKM Resources Inc. and changed its name to Tahoe Resources Inc. in January 2010. Tahoe Resources Inc. was incorporated in 2009 and is headquartered in Reno, Nevada.
Barrick Gold Company Profile
Barrick Gold Corporation engages in the exploration and development of mineral properties. It primarily explores for gold and copper deposits. The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the ZaldÃvar, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia. It also owns gold mines and exploration properties in Africa; and gold projects located in South America and North America. Barrick Gold Corporation has strategic cooperation agreement with Shandong Gold Group Co. Ltd. The company was founded in 1983 and is headquartered in Toronto, Canada.
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