NEM vs. GOLD, FNV, AEM, WPM, GFI, NTR, NUE, DOW, DD, and ECL
Should you be buying Newmont stock or one of its competitors? The main competitors of Newmont include Barrick Gold (GOLD), Franco-Nevada (FNV), Agnico Eagle Mines (AEM), Wheaton Precious Metals (WPM), Gold Fields (GFI), Nutrien (NTR), Nucor (NUE), DOW (DOW), DuPont de Nemours (DD), and Ecolab (ECL). These companies are all part of the "basic materials" sector.
Newmont vs.
Barrick Gold (NYSE:GOLD) and Newmont (NYSE:NEM) are both large-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, media sentiment, institutional ownership, profitability, community ranking, analyst recommendations and valuation.
In the previous week, Barrick Gold and Barrick Gold both had 9 articles in the media. Newmont's average media sentiment score of 0.63 beat Barrick Gold's score of 0.40 indicating that Newmont is being referred to more favorably in the news media.
Barrick Gold has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
Barrick Gold has higher earnings, but lower revenue than Newmont. Newmont is trading at a lower price-to-earnings ratio than Barrick Gold, indicating that it is currently the more affordable of the two stocks.
56.8% of Barrick Gold shares are held by institutional investors. Comparatively, 77.6% of Newmont shares are held by institutional investors. 0.6% of Barrick Gold shares are held by company insiders. Comparatively, 0.1% of Newmont shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Barrick Gold pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Newmont pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. Barrick Gold pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Newmont pays out -296.3% of its earnings in the form of a dividend. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.
Newmont received 133 more outperform votes than Barrick Gold when rated by MarketBeat users. Likewise, 64.05% of users gave Newmont an outperform vote while only 56.61% of users gave Barrick Gold an outperform vote.
Barrick Gold presently has a consensus price target of $23.60, suggesting a potential upside of 31.12%. Newmont has a consensus price target of $62.21, suggesting a potential upside of 33.38%. Given Newmont's higher probable upside, analysts clearly believe Newmont is more favorable than Barrick Gold.
Barrick Gold has a net margin of 3.92% compared to Newmont's net margin of -3.60%. Newmont's return on equity of 6.98% beat Barrick Gold's return on equity.
Summary
Newmont beats Barrick Gold on 13 of the 19 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
Media Sentiment Over Time
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.
