Sandstorm Gold (NASDAQ: SAND) and Agnico Eagle Mines Limited (NYSE:AEM) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Profitability

This table compares Sandstorm Gold and Agnico Eagle Mines Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sandstorm Gold N/A N/A N/A
Agnico Eagle Mines Limited 11.32% 5.38% 3.40%

Valuation and Earnings

This table compares Sandstorm Gold and Agnico Eagle Mines Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sandstorm Gold $68.17 million 12.78 $43.87 million N/A N/A
Agnico Eagle Mines Limited $2.21 billion 4.89 $932.83 million $1.09 42.88

Agnico Eagle Mines Limited has higher revenue and earnings than Sandstorm Gold.

Institutional & Insider Ownership

59.0% of Agnico Eagle Mines Limited shares are held by institutional investors. 0.5% of Agnico Eagle Mines Limited shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Agnico Eagle Mines Limited pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Sandstorm Gold does not pay a dividend. Agnico Eagle Mines Limited pays out 36.7% of its earnings in the form of a dividend. Sandstorm Gold has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current ratings for Sandstorm Gold and Agnico Eagle Mines Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sandstorm Gold 0 1 4 0 2.80
Agnico Eagle Mines Limited 1 3 5 0 2.44

Sandstorm Gold currently has a consensus price target of $6.00, indicating a potential upside of 27.12%. Agnico Eagle Mines Limited has a consensus price target of $55.64, indicating a potential upside of 19.05%. Given Sandstorm Gold’s stronger consensus rating and higher possible upside, equities analysts plainly believe Sandstorm Gold is more favorable than Agnico Eagle Mines Limited.

Summary

Agnico Eagle Mines Limited beats Sandstorm Gold on 9 of the 15 factors compared between the two stocks.

Sandstorm Gold Company Profile

Sandstorm Gold Ltd is a Canada-based company engaged in providing financing to mining companies. The Company focuses on acquiring gold and other metal purchase agreements (Gold Streams or Silver Streams), and royalties from companies that have advanced stage development projects or operating mines. The Company operates in the segments of Bachelor Lake, Black Fox, Chapada Santa Elena, Yamana Silver Stream, Chapada, Diavik Mine, Other Royalties, Other and Corporate. The Company has acquired a portfolio of approximately 140 streams and royalties, of which approximately 20 of the underlying mines are producing. The Company’s projects include Yamana Silver Stream; Cerro Moro, which is located approximately 70 kilometers southwest of the coastal port city of Puerto Deseado; Chapada Mine, which is located 270 kilometers northwest of Brasilia in Goias state, Brazil; Black Fox Mine; Santa Elena Mine; Bachelor Lake Mine; Karma Mine; Ming Mine, Bracemac-McLeod Mine and Aurizona Mine.

Agnico Eagle Mines Limited Company Profile

Agnico Eagle Mines Limited is a gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. The Company operates through three business units. The Northern Business consists of its operations in Canada and Finland. The Company’s Canadian properties include the LaRonde mine, the Lapa mine, the Goldex mine, the Meadowbank mine and the Meliadine project, and Canadian Malartic Mine. The operations in Finland include the Kittila mine. The Southern Business consists of its operations in Mexico. Its Pinos Altos mine includes the Creston Mascota deposit. The La India mine is owned by its indirect subsidiary. Its Exploration group focuses on the identification of new mineral reserves and mineral resources, and new development opportunities in gold producing regions. Its exploration activities are concentrated in Canada, Europe, Latin America and the United States.

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