Yamana Gold (NYSE: AUY) and McEwen Mining (NYSE:MUX) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Earnings & Valuation

This table compares Yamana Gold and McEwen Mining’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Yamana Gold $1.79 billion 1.40 -$307.90 million ($0.40) -6.60
McEwen Mining $60.39 million 10.97 $21.05 million ($0.06) -33.17

McEwen Mining has higher revenue, but lower earnings than Yamana Gold. McEwen Mining is trading at a lower price-to-earnings ratio than Yamana Gold, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Yamana Gold and McEwen Mining, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yamana Gold 1 6 2 0 2.11
McEwen Mining 0 0 2 0 3.00

Yamana Gold presently has a consensus price target of $3.54, suggesting a potential upside of 34.00%. McEwen Mining has a consensus price target of $5.00, suggesting a potential upside of 151.26%. Given McEwen Mining’s stronger consensus rating and higher possible upside, analysts plainly believe McEwen Mining is more favorable than Yamana Gold.

Profitability

This table compares Yamana Gold and McEwen Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yamana Gold -20.19% 0.71% 0.37%
McEwen Mining -31.71% -4.25% -3.79%

Insider & Institutional Ownership

41.7% of Yamana Gold shares are held by institutional investors. Comparatively, 27.3% of McEwen Mining shares are held by institutional investors. 2.7% of Yamana Gold shares are held by insiders. Comparatively, 26.1% of McEwen Mining shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Yamana Gold has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, McEwen Mining has a beta of -1.41, indicating that its stock price is 241% less volatile than the S&P 500.

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. McEwen Mining does not pay a dividend. Yamana Gold pays out -5.0% of its earnings in the form of a dividend.

Summary

Yamana Gold beats McEwen Mining on 8 of the 14 factors compared between the two stocks.

About Yamana Gold

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

About McEwen Mining

McEwen Mining Inc. is a mining and minerals production and exploration company. The Company is focused on precious and base metals in Argentina, Mexico and the United States. The Company’s segments include Mexico, Minera Santa Cruz S.A. (MSC), Nevada and Los Azules. The Mexico Operations segment includes properties, such as El Gallo 1 mine and the El Gallo 2 project. The MSC segment includes properties, such as the San Jose mine and other concessions located around the mine. The Company’s properties in Nevada segment include Gold Bar project and exploration properties. The Gold Bar project is a proposed mine project. The Los Azules segment includes various properties, such as Los Azules project, Chonchones project, Laganoso project, La Cerrada project and Other Argentina properties. The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile.

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