Kinross Gold Corporation (NYSE: KGC) and Pershing Gold Corporation (NASDAQ:PGLC) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kinross Gold Corporation and Pershing Gold Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinross Gold Corporation 0 6 5 1 2.58
Pershing Gold Corporation 0 0 3 0 3.00

Kinross Gold Corporation currently has a consensus price target of $5.17, suggesting a potential upside of 21.89%. Pershing Gold Corporation has a consensus price target of $7.88, suggesting a potential upside of 166.95%. Given Pershing Gold Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Pershing Gold Corporation is more favorable than Kinross Gold Corporation.

Risk and Volatility

Kinross Gold Corporation has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Pershing Gold Corporation has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kinross Gold Corporation and Pershing Gold Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kinross Gold Corporation $3.48 billion 1.52 $1.04 billion $0.05 84.82
Pershing Gold Corporation N/A N/A -$14.71 million ($0.59) -5.00

Kinross Gold Corporation has higher revenue and earnings than Pershing Gold Corporation. Pershing Gold Corporation is trading at a lower price-to-earnings ratio than Kinross Gold Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

59.6% of Kinross Gold Corporation shares are held by institutional investors. Comparatively, 19.7% of Pershing Gold Corporation shares are held by institutional investors. 1.0% of Kinross Gold Corporation shares are held by company insiders. Comparatively, 39.8% of Pershing Gold Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Kinross Gold Corporation and Pershing Gold Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinross Gold Corporation 1.54% 3.63% 1.95%
Pershing Gold Corporation N/A -43.00% -40.70%

Summary

Kinross Gold Corporation beats Pershing Gold Corporation on 9 of the 13 factors compared between the two stocks.

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.

About Pershing Gold Corporation

Pershing Gold Corporation is a gold and precious metals exploration company. The Company focuses on exploration, development and mining opportunities in Nevada. The Company is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. The Company operates its business directly and also through its subsidiary, Gold Acquisition Corp. Gold Acquisition Corp. owns and is engaged in conducting exploration on the Relief Canyon Mine property in northwestern Nevada. The Company is engaged in conducting exploration on the Relief Canyon expansion properties. The Relief Canyon Mine includes approximately three open pit mines, heap leach pads consisting of approximately six cells, approximately two solution ponds and a cement block constructed adsorption desorption-recovery (ADR) solution processing circuit. The Pershing Pass property includes approximately 490 lode mining claims. The Company has not generated any revenues.

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