Rio Alto Mining (NASDAQ: RIOM) and Yamana Gold (NYSE:AUY) are both integrated mining companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider and Institutional Ownership

42.6% of Yamana Gold shares are held by institutional investors. 2.7% of Yamana Gold 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.

Valuation and Earnings

This table compares Rio Alto Mining and Yamana Gold’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Rio Alto Mining N/A N/A N/A N/A N/A
Yamana Gold $1.79 billion 1.42 -$307.90 million ($0.40) -6.70

Rio Alto Mining has higher revenue, but lower earnings than Yamana Gold.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Rio Alto Mining and Yamana Gold, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Alto Mining 0 0 0 0 N/A
Yamana Gold 1 6 2 0 2.11

Yamana Gold has a consensus price target of $3.54, suggesting a potential upside of 32.00%. Given Yamana Gold’s higher possible upside, analysts clearly believe Yamana Gold is more favorable than Rio Alto Mining.

Profitability

This table compares Rio Alto Mining and Yamana Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rio Alto Mining N/A N/A N/A
Yamana Gold -20.19% 0.71% 0.37%

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Rio Alto Mining does not pay a dividend. Yamana Gold pays out -5.0% of its earnings in the form of a dividend.

Summary

Yamana Gold beats Rio Alto Mining on 9 of the 10 factors compared between the two stocks.

Rio Alto Mining Company Profile

Rio Alto Mining Limited is a Canada-based resource exploration company. The Company is engaged in the business of acquiring, exploring, developing and operating mineral resource properties in Peru. The Company is also engaged in the business of acquiring, exploring, and developing gold resources and advanced stage exploration projects in Peru and Latin America. The Company owns and operates the La Arena Mine and the Shahuindo Gold Projects in northern Peru. The Company is focused on the development of the 21,000 hectares La Arena gold / copper project, located in north central Peru. The La Arena Project consists of 20,673 hectares in 44 concessions located 480 kilometers north-northwest of Lima, the capital of Peru, and approximately 18 kilometers from Huamachuco.

Yamana Gold Company Profile

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

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