Financial Analysis: Newmont Mining (NEM) vs. Its Peers
Newmont Mining (NYSE: NEM) is one of 61 public companies in the “Gold Mining” industry, but how does it weigh in compared to its rivals? We will compare Newmont Mining to related companies based on the strength of its risk, profitability, valuation, dividends, analyst recommendations, earnings and institutional ownership.
Valuation & Earnings
This table compares Newmont Mining and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Newmont Mining||$6.71 billion||-$627.00 million||246.60|
|Newmont Mining Competitors||$2.41 billion||-$32.21 million||177.49|
Newmont Mining has higher revenue, but lower earnings than its rivals. Newmont Mining is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent ratings and price targets for Newmont Mining and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Newmont Mining Competitors||471||1831||2141||48||2.39|
Newmont Mining presently has a consensus price target of $40.70, indicating a potential upside of 10.02%. As a group, “Gold Mining” companies have a potential upside of 49.66%. Given Newmont Mining’s rivals higher probable upside, analysts clearly believe Newmont Mining has less favorable growth aspects than its rivals.
Risk & Volatility
Newmont Mining has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Newmont Mining’s rivals have a beta of -0.13, suggesting that their average stock price is 113% less volatile than the S&P 500.
Newmont Mining pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Newmont Mining pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Gold Mining” companies pay a dividend yield of 0.9% and pay out 67.3% of their earnings in the form of a dividend. Newmont Mining lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares Newmont Mining and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Newmont Mining Competitors||-2,998.75%||-8.66%||-3.99%|
Institutional & Insider Ownership
82.0% of Newmont Mining shares are owned by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are owned by institutional investors. 0.3% of Newmont Mining shares are owned by insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Newmont Mining beats its rivals on 8 of the 15 factors compared.
Newmont Mining 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).
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