Reviewing Iamgold Corporation (IAG) and Pershing Gold Corporation (PGLC)
Iamgold Corporation (NYSE: IAG) and Pershing Gold Corporation (NASDAQ:PGLC) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Risk and Volatility
Iamgold Corporation has a beta of -0.31, suggesting that its share price is 131% 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.
Institutional and Insider Ownership
58.0% of Iamgold Corporation shares are held by institutional investors. Comparatively, 19.0% of Pershing Gold Corporation shares are held by institutional investors. 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 stock is poised for long-term growth.
Earnings & Valuation
This table compares Iamgold Corporation and Pershing Gold Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Iamgold Corporation||$1.07 billion||2.37||$341.40 million||$1.07||5.09|
|Pershing Gold Corporation||N/A||N/A||-$14.69 million||($0.59)||-4.98|
Iamgold Corporation has higher revenue and earnings than Pershing Gold Corporation. Pershing 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.
This is a breakdown of recent ratings and price targets for Iamgold Corporation and Pershing Gold Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pershing Gold Corporation||0||0||3||0||3.00|
Iamgold Corporation currently has a consensus target price of $5.85, indicating a potential upside of 7.34%. Pershing Gold Corporation has a consensus target price of $7.88, indicating a potential upside of 167.86%. Given Pershing Gold Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Pershing Gold Corporation is more favorable than Iamgold Corporation.
This table compares Iamgold Corporation and Pershing Gold Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pershing Gold Corporation||N/A||-40.82%||-38.78%|
Iamgold Corporation beats Pershing Gold Corporation on 7 of the 12 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 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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