Critical Survey: Iamgold (NYSE:IAG) versus Perenti (OTCMKTS:AUSDF)

Perenti (OTCMKTS:AUSDF) and Iamgold (NYSE:IAG) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Valuation & Earnings

This table compares Perenti and Iamgold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perenti	N/A	N/A	N/A	($0.14)	-13.20
Iamgold	$2.85 billion	3.66	$664.40 million	$1.98	9.17

Iamgold has higher revenue and earnings than Perenti. Perenti is trading at a lower price-to-earnings ratio than Iamgold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Perenti and Iamgold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perenti	N/A	N/A	N/A
Iamgold	31.40%	28.97%	20.87%

Analyst Recommendations

This is a summary of recent ratings and price targets for Perenti and Iamgold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perenti	0	0	0	0	0.00
Iamgold	0	3	5	1	2.78

Iamgold has a consensus price target of $19.00, indicating a potential upside of 4.61%. Given Iamgold’s stronger consensus rating and higher possible upside, analysts plainly believe Iamgold is more favorable than Perenti.

Insider and Institutional Ownership

22.4% of Perenti shares are held by institutional investors. Comparatively, 47.1% of Iamgold shares are held by institutional investors. 0.2% of Iamgold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Iamgold beats Perenti on 12 of the 12 factors compared between the two stocks.

About Perenti

Perenti Limited operates as a mining services company worldwide. It operates through Contract Mining, Drilling Services, and Mining Services and Idoba segments. The company offers underground and surface contract mining, drill and blast, in-pit grade control, exploration drilling, earthmoving, and machinery rebuilds services; and drilling services including specialized deep hole multi-intersectional directional diamond core drilling, underground diamond core drilling, drilling and blasting, and in-pit grade control services. It also provides mining support services, such as equipment hire, equipment parts and sales, equipment supply, logistics services, and technology driven products and services. The company was formerly known as Perenti Global Limited and changed its name to Perenti Limited in October 2022. Perenti Limited was incorporated in 1986 and is headquartered in Northbridge, Australia.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.