NEM vs. RGLD, AEM, GOLD, WPM, FNV, GFI, AU, KGC, PAAS, and AGI
Should you be buying Newmont stock or one of its competitors? The main competitors of Newmont include Royal Gold (RGLD), Agnico Eagle Mines (AEM), Barrick Gold (GOLD), Wheaton Precious Metals (WPM), Franco-Nevada (FNV), Gold Fields (GFI), AngloGold Ashanti (AU), Kinross Gold (KGC), Pan American Silver (PAAS), and Alamos Gold (AGI). These companies are all part of the "basic materials" sector.
Royal Gold (NASDAQ:RGLD) and Newmont (NYSE:NEM) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, media sentiment, valuation, community ranking, risk and earnings.
Royal Gold presently has a consensus target price of $152.75, indicating a potential upside of 13.07%. Newmont has a consensus target price of $50.00, indicating a potential upside of 7.00%. Given Newmont's higher possible upside, equities analysts clearly believe Royal Gold is more favorable than Newmont.
Royal Gold has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.
Royal Gold has a net margin of 38.12% compared to Royal Gold's net margin of -13.16%. Royal Gold's return on equity of 8.65% beat Newmont's return on equity.
83.7% of Royal Gold shares are owned by institutional investors. Comparatively, 68.9% of Newmont shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by insiders. Comparatively, 0.1% of Newmont shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Royal Gold pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Royal Gold pays out 47.2% of its earnings in the form of a dividend. Newmont pays out -37.5% 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. Royal Gold has raised its dividend for 24 consecutive years. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.
Newmont received 161 more outperform votes than Royal Gold when rated by MarketBeat users. However, 70.20% of users gave Royal Gold an outperform vote while only 63.41% of users gave Newmont an outperform vote.
Royal Gold has higher earnings, but lower revenue than Newmont. Newmont is trading at a lower price-to-earnings ratio than Royal Gold, indicating that it is currently the more affordable of the two stocks.
In the previous week, Newmont had 17 more articles in the media than Royal Gold. MarketBeat recorded 26 mentions for Newmont and 9 mentions for Royal Gold. Royal Gold's average media sentiment score of 0.83 beat Newmont's score of 0.69 indicating that Newmont is being referred to more favorably in the news media.
Summary
Royal Gold beats Newmont on 12 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NEM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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