Critical Contrast: Kinross Gold Corporation (KGC) and Barrick Gold Corporation (NYSE:ABX)
Kinross Gold Corporation (NYSE: KGC) and Barrick Gold Corporation (NYSE:ABX) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitabiliy and risk.
Valuation and Earnings
This table compares Kinross Gold Corporation and Barrick Gold Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kinross Gold Corporation||$3.48 billion||1.52||$1.04 billion||$0.05||85.02|
|Barrick Gold Corporation||$8.77 billion||2.27||$4.42 billion||$2.02||8.45|
Barrick Gold Corporation has higher revenue and earnings than Kinross Gold Corporation. Barrick Gold Corporation is trading at a lower price-to-earnings ratio than Kinross Gold Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Kinross Gold Corporation has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Barrick Gold Corporation has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500.
Barrick Gold Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. Kinross Gold Corporation does not pay a dividend. Barrick Gold Corporation pays out 5.9% of its earnings in the form of a dividend.
This table compares Kinross Gold Corporation and Barrick Gold Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kinross Gold Corporation||1.54%||3.63%||1.95%|
|Barrick Gold Corporation||26.95%||8.91%||3.71%|
Insider & Institutional Ownership
60.9% of Kinross Gold Corporation shares are held by institutional investors. Comparatively, 58.9% of Barrick Gold Corporation shares are held by institutional investors. 1.0% of Kinross Gold Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Kinross Gold Corporation and Barrick Gold Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kinross Gold Corporation||1||5||5||1||2.50|
|Barrick Gold Corporation||0||8||8||0||2.50|
Kinross Gold Corporation currently has a consensus price target of $5.01, indicating a potential upside of 17.86%. Barrick Gold Corporation has a consensus price target of $22.15, indicating a potential upside of 29.74%. Given Barrick Gold Corporation’s higher probable upside, analysts clearly believe Barrick Gold Corporation is more favorable than Kinross Gold Corporation.
Barrick Gold Corporation beats Kinross Gold Corporation on 10 of the 16 factors compared between the two stocks.
Kinross Gold Corporation Company Profile
Kinross Gold Corporation is a gold mining company. The Company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. The Company’s segments include Fort Knox, Round Mountain, Bald Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. Fort Knox is an open-pit gold mine located in Fairbanks, Alaska. Round Mountain open-pit mine is located in Nye County, Nevada. Bald Mountain open-pit mine is located in Nevada. Kettle River-Buckhorn mine is located in northern Washington State. The Kupol segment includes the Kupol and Dvoinoye mines. Paracatu is a gold mine located in the State of Minas Gerais, Brazil. Maricunga open pit mine is located in Copiapo, Chile. Tasiast mine is located in north-western Mauritania. Chirano is located in southwestern Ghana.
Barrick Gold Corporation Company Profile
Barrick Gold Corporation (Barrick) is a gold mining company. The Company is principally engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary, Acacia, owns gold mines and exploration properties in Africa. It also holds interest in gold mines, including Porgera and Kalgoorlie, and copper mines, such as Zaldivar and Lumwana. The Pascua-Lama project is located on the border between Chile and Argentina. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.
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