NGT vs. AEM, ABX, WPM, FNV, NTR, TECK.B, IVN, TNX, K, and PAAS
Should you be buying Newmont stock or one of its competitors? The main competitors of Newmont include Agnico Eagle Mines (AEM), Barrick Gold (ABX), Wheaton Precious Metals (WPM), Franco-Nevada (FNV), Nutrien (NTR), Teck Resources (TECK.B), Ivanhoe Mines (IVN), TRX Gold (TNX), Kinross Gold (K), and Pan American Silver (PAAS). These companies are all part of the "basic materials" sector.
Newmont (TSE:NGT) and Agnico Eagle Mines (TSE:AEM) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, media sentiment, community ranking, analyst recommendations, profitability, dividends, valuation and earnings.
Agnico Eagle Mines has a net margin of 29.29% compared to Newmont's net margin of -21.11%. Agnico Eagle Mines' return on equity of 10.89% beat Newmont's return on equity.
Newmont currently has a consensus price target of C$59.50, indicating a potential upside of 12.54%. Agnico Eagle Mines has a consensus price target of C$97.50, indicating a potential upside of 11.74%. Given Newmont's higher probable upside, equities analysts clearly believe Newmont is more favorable than Agnico Eagle Mines.
Agnico Eagle Mines received 463 more outperform votes than Newmont when rated by MarketBeat users. However, 66.67% of users gave Newmont an outperform vote while only 60.51% of users gave Agnico Eagle Mines an outperform vote.
71.6% of Newmont shares are held by institutional investors. Comparatively, 71.6% of Agnico Eagle Mines shares are held by institutional investors. 0.1% of Newmont shares are held by insiders. Comparatively, 0.1% of Agnico Eagle Mines shares are held 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.
Agnico Eagle Mines has lower revenue, but higher earnings than Newmont. Newmont is trading at a lower price-to-earnings ratio than Agnico Eagle Mines, indicating that it is currently the more affordable of the two stocks.
Newmont pays an annual dividend of C$1.36 per share and has a dividend yield of 2.6%. Agnico Eagle Mines pays an annual dividend of C$2.15 per share and has a dividend yield of 2.5%. Newmont pays out -33.1% of its earnings in the form of a dividend. Agnico Eagle Mines pays out 39.7% 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. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Newmont had 1 more articles in the media than Agnico Eagle Mines. MarketBeat recorded 23 mentions for Newmont and 22 mentions for Agnico Eagle Mines. Agnico Eagle Mines' average media sentiment score of 0.47 beat Newmont's score of 0.28 indicating that Agnico Eagle Mines is being referred to more favorably in the news media.
Newmont has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
Summary
Agnico Eagle Mines beats Newmont on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NGT 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 TSE 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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