Kinross Gold Corporation (NYSE: KGC) and AngloGold Ashanti Limited (NYSE:AU) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitabiliy.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Kinross Gold Corporation and AngloGold Ashanti Limited, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kinross Gold Corporation | 1 | 5 | 5 | 1 | 2.50 |
| AngloGold Ashanti Limited | 1 | 4 | 3 | 0 | 2.25 |
Kinross Gold Corporation currently has a consensus price target of $5.01, suggesting a potential upside of 19.83%. AngloGold Ashanti Limited has a consensus price target of $12.43, suggesting a potential upside of 35.77%. Given AngloGold Ashanti Limited’s higher probable upside, analysts plainly believe AngloGold Ashanti Limited is more favorable than Kinross Gold Corporation.
Profitability
This table compares Kinross Gold Corporation and AngloGold Ashanti Limited’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kinross Gold Corporation | 1.54% | 3.63% | 1.95% |
| AngloGold Ashanti Limited | N/A | N/A | N/A |
Earnings & Valuation
This table compares Kinross Gold Corporation and AngloGold Ashanti Limited’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Kinross Gold Corporation | $3.49 billion | 1.49 | $1.01 billion | $0.05 | 83.62 |
| AngloGold Ashanti Limited | $4.08 billion | 0.92 | $1.34 billion | N/A | N/A |
AngloGold Ashanti Limited has higher revenue and earnings than Kinross Gold Corporation.
Dividends
AngloGold Ashanti Limited pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Kinross Gold Corporation does not pay a dividend.
Insider & Institutional Ownership
60.9% of Kinross Gold Corporation shares are held by institutional investors. Comparatively, 35.9% of AngloGold Ashanti Limited shares are held by institutional investors. 1.0% of Kinross Gold Corporation shares are held by 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.
Volatility & Risk
Kinross Gold Corporation has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, AngloGold Ashanti Limited has a beta of -1.37, indicating that its stock price is 237% less volatile than the S&P 500.
Summary
Kinross Gold Corporation beats AngloGold Ashanti Limited on 10 of the 15 factors compared between the two stocks.
About Kinross Gold Corporation
Kinross Gold Corporation is a gold mining company. The Company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. The Company’s segments include Fort Knox, Round Mountain, Bald Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. Fort Knox is an open-pit gold mine located in Fairbanks, Alaska. Round Mountain open-pit mine is located in Nye County, Nevada. Bald Mountain open-pit mine is located in Nevada. Kettle River-Buckhorn mine is located in northern Washington State. The Kupol segment includes the Kupol and Dvoinoye mines. Paracatu is a gold mine located in the State of Minas Gerais, Brazil. Maricunga open pit mine is located in Copiapo, Chile. Tasiast mine is located in north-western Mauritania. Chirano is located in southwestern Ghana.
About AngloGold Ashanti Limited
AngloGold Ashanti Limited (AngloGold Ashanti) is a gold mining company. The Company’s business activities span the spectrum of the mining value chain. Its main product is gold. Its portfolio includes over 17 mines in approximately nine countries. It also produces silver, uranium and sulfuric acid as by-products. The Company operates through four segments: South Africa, Continental Africa, Australasia and Americas. Its South African operations comprise over four mines and surface production facilities, which include the Vaal River operations, including Kopanang and Moab Khotsong; The West Wits operations, including Mponeng and TauTona, and surface operations. It has operations in Continental Africa in locations, including Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania. The Australasia segment includes the operations in Australia. It consists of Sunrise Dam and Tropicana. The Americas segment includes the operations in Argentina, Brazil and the United States.
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