Central Asia Metals (LON:CAML) and Kenmare Resources (LON:KMR) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Dividends
Central Asia Metals pays an annual dividend of GBX 0.08 per share and has a dividend yield of 0.0%. Kenmare Resources pays an annual dividend of GBX 0.08 per share and has a dividend yield of 0.0%. Central Asia Metals pays out 0.5% of its earnings in the form of a dividend. Kenmare Resources pays out 0.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Central Asia Metals is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Central Asia Metals and Kenmare Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Central Asia Metals | N/A | N/A | N/A |
Kenmare Resources | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current recommendations for Central Asia Metals and Kenmare Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Central Asia Metals | 0 | 1 | 3 | 0 | 2.75 |
Kenmare Resources | 0 | 0 | 2 | 0 | 3.00 |
Central Asia Metals currently has a consensus price target of GBX 235, indicating a potential downside of 13.76%. Kenmare Resources has a consensus price target of GBX 470, indicating a potential upside of 8.29%. Given Kenmare Resources' stronger consensus rating and higher probable upside, analysts clearly believe Kenmare Resources is more favorable than Central Asia Metals.
Valuation and Earnings
This table compares Central Asia Metals and Kenmare Resources' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Central Asia Metals | £160.13 million | 3.00 | N/A | GBX 17.50 | 15.57 |
Kenmare Resources | £243.75 million | 1.95 | N/A | GBX 10.90 | 39.82 |
Central Asia Metals is trading at a lower price-to-earnings ratio than Kenmare Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Central Asia Metals beats Kenmare Resources on 5 of the 9 factors compared between the two stocks.