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

Dividends

McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Kinross Gold does not pay a dividend. McEwen Mining pays out -33.3% of its earnings in the form of a dividend.

Volatility and Risk

Kinross Gold has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, McEwen Mining has a beta of -1.47, meaning that its share price is 247% less volatile than the S&P 500.

Institutional and Insider Ownership

57.4% of Kinross Gold shares are held by institutional investors. Comparatively, 31.7% of McEwen Mining shares are held by institutional investors. 1.0% of Kinross 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, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kinross Gold and McEwen Mining, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinross Gold 1 6 2 0 2.11
McEwen Mining 0 0 3 0 3.00

Kinross Gold presently has a consensus price target of $4.54, suggesting a potential upside of 51.84%. McEwen Mining has a consensus price target of $4.00, suggesting a potential upside of 99.00%. Given McEwen Mining’s stronger consensus rating and higher probable upside, analysts plainly believe McEwen Mining is more favorable than Kinross Gold.

Profitability

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

Net Margins Return on Equity Return on Assets
Kinross Gold 11.67% 5.73% 3.22%
McEwen Mining -14.56% -2.68% -2.36%

Valuation & Earnings

This table compares Kinross Gold and McEwen Mining’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kinross Gold $3.30 billion 1.13 $445.40 million $0.14 21.36
McEwen Mining $67.72 million 10.01 -$10.63 million ($0.03) -67.00

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

Summary

Kinross Gold beats McEwen Mining on 8 of the 15 factors compared between the two stocks.

Kinross Gold Company Profile

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, extraction, and processing of gold-containing ore. It also engages in the reclamation of gold mining properties; and production and sale of silver. The company's gold production and exploration activities are carried out principally in Canada, the United States, Russia, Brazil, Chile, Ghana, and Mauritania. The company was founded in 1972 and is headquartered in Toronto, Canada.

McEwen Mining Company Profile

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. The company owns 100% interests in the El Gallo 1 mine and El Gallo 2 project in the state of Sinaloa, Mexico; and the Black Fox Complex, Buffalo Ankerite, Fuller, Davidson Tisdale, and Black Fox North properties in Canada. It also owns a 61.01% interest in the Paymaster property in Canada; and a 49% interest in the San José mine in the province of Santa Cruz, Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties in Nevada, the United States; and the Los Azules copper project in San Juan, Argentina. Further, it owns interests in other exploration properties located in the United States; and in the province of San Juan, Argentina, as well as in Mexico. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is based in Toronto, Canada.

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