NovaGold Resources (NYSE:NG – Get Rating) and Kinross Gold (NYSE:KGC – Get Rating) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Valuation & Earnings
This table compares NovaGold Resources and Kinross Gold’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
NovaGold Resources | N/A | N/A | -$40.54 million | ($0.13) | -44.38 |
Kinross Gold | $3.73 billion | 1.71 | $221.20 million | $0.17 | 28.94 |
Kinross Gold has higher revenue and earnings than NovaGold Resources. NovaGold Resources is trading at a lower price-to-earnings ratio than Kinross Gold, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.5% of NovaGold Resources shares are owned by institutional investors. Comparatively, 56.6% of Kinross Gold shares are owned by institutional investors. 3.3% of NovaGold Resources shares are owned by company insiders. Comparatively, 1.0% of Kinross Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
NovaGold Resources has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for NovaGold Resources and Kinross Gold, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
NovaGold Resources | 0 | 0 | 0 | 0 | N/A |
Kinross Gold | 0 | 4 | 8 | 0 | 2.67 |
Kinross Gold has a consensus target price of $8.23, indicating a potential upside of 67.26%. Given Kinross Gold’s higher probable upside, analysts plainly believe Kinross Gold is more favorable than NovaGold Resources.
Profitability
This table compares NovaGold Resources and Kinross Gold’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
NovaGold Resources | N/A | -51.33% | -21.16% |
Kinross Gold | 5.93% | 8.00% | 5.14% |
Summary
Kinross Gold beats NovaGold Resources on 10 of the 11 factors compared between the two stocks.
NovaGold Resources Company Profile (Get Rating)
Kinross Gold Company Profile (Get Rating)
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Read More:Reviewing NovaGold Resources (NYSE:NG) & Kinross Gold (NYSE:KGC)
2022-05-08 16:13:17