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 contrast the two companies based on the strength of their media sentiment, institutional ownership, dividends, analyst recommendations, profitability, risk, valuation, community ranking and earnings.
Royal Gold has a net margin of 38.12% compared to Royal Gold's net margin of -20.19%. Newmont's return on equity of 7.96% beat Royal Gold's return on equity.
Newmont received 155 more outperform votes than Royal Gold when rated by MarketBeat users. However, 70.44% of users gave Royal Gold an outperform vote while only 63.28% of users gave Newmont an outperform vote.
Royal Gold currently has a consensus price target of $142.13, suggesting a potential upside of 10.87%. Newmont has a consensus price target of $48.36, suggesting a potential upside of 15.30%. Given Royal Gold's stronger consensus rating and higher probable upside, analysts plainly believe Newmont is more favorable than Royal Gold.
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.
Royal Gold has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
In the previous week, Newmont had 17 more articles in the media than Royal Gold. MarketBeat recorded 22 mentions for Newmont and 5 mentions for Royal Gold. Newmont's average media sentiment score of 1.13 beat Royal Gold's score of 0.57 indicating that Royal Gold is being referred to more favorably in the media.
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 2.4%. 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.
83.7% of Royal Gold shares are held by institutional investors. Comparatively, 68.9% of Newmont shares are held by institutional investors. 0.5% of Royal Gold shares are held by insiders. Comparatively, 0.1% of Newmont shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Royal Gold beats Newmont on 13 of the 21 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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