Reviewing Newmont Mining Corporation (NEM) and B2Gold Corp (NYSE:BTG)
Newmont Mining Corporation (NYSE: NEM) and B2Gold Corp (NYSE:BTG) are both mid-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Institutional and Insider Ownership
81.4% of Newmont Mining Corporation shares are held by institutional investors. 0.3% of Newmont Mining Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Newmont Mining Corporation and B2Gold Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Newmont Mining Corporation||1||6||11||0||2.56|
Newmont Mining Corporation presently has a consensus target price of $41.87, indicating a potential upside of 15.82%. B2Gold Corp has a consensus target price of $4.94, indicating a potential upside of 110.11%. Given B2Gold Corp’s stronger consensus rating and higher possible upside, analysts clearly believe B2Gold Corp is more favorable than Newmont Mining Corporation.
This table compares Newmont Mining Corporation and B2Gold Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Newmont Mining Corporation||-6.73%||6.67%||3.82%|
Newmont Mining Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. B2Gold Corp does not pay a dividend. Newmont Mining Corporation pays out -22.2% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Newmont Mining Corporation and B2Gold Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Newmont Mining Corporation||$7.11 billion||2.71||$2.76 billion||($0.90)||-40.17|
|B2Gold Corp||$685.30 million||3.35||$318.37 million||N/A||N/A|
Newmont Mining Corporation has higher revenue and earnings than B2Gold Corp.
Newmont Mining Corporation beats B2Gold Corp on 9 of the 14 factors compared between the two stocks.
Newmont Mining Corporation Company Profile
Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company’s segments include North America, South America, Asia Pacific and Africa. The Company’s North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in the state of Nevada, and Cripple Creek &Victor (CC&V) in the state of Colorado, in the United States. The Company’s South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Company’s Asia Pacific segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Company’s Africa segment consists primarily of Ahafo and Akyem in Ghana. As of December 31, 2016, it had gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles (59,000 square kilometers).
B2Gold Corp Company Profile
B2Gold Corp. (B2Gold) is a Canada-based gold producer with approximately four operating mines and one mine under construction. The Company has a portfolio of other evaluation and exploration projects in various countries, including Mali, Colombia, Burkina Faso, Finland, Chile and Nicaragua. Its material mineral properties consist of three mines and one mine under construction: Otjikoto mine, an open pit gold mine located approximately 300 kilometers north of Windhoek, the capital of Namibia (Otjikoto Mine); Masbate mine, an open pit gold mine, located near the northern tip of the island of Masbate, over 360 kilometers south-east of Manila (Masbate Gold Project); La Libertad mine, an open pit gold mine located over 110 kilometers due east of Managua and 32 kilometers northeast of Juigalpa, Nicaragua (La Libertad Mine), and Fekola gold project, an open pit gold mine under construction located approximately 40 kilometers south of the city of Kenieba, Mali (Fekola Project).
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