Kinross Gold Corporation (NYSE: KGC) and Iamgold Corporation (NYSE:IAG) are both mid-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Profitability
This table compares Kinross Gold Corporation and Iamgold Corporation’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% |
| Iamgold Corporation | 46.75% | 1.43% | 0.95% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Kinross Gold Corporation and Iamgold Corporation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kinross Gold Corporation | 1 | 5 | 5 | 1 | 2.50 |
| Iamgold Corporation | 0 | 6 | 2 | 0 | 2.25 |
Kinross Gold Corporation presently has a consensus target price of $5.01, indicating a potential upside of 20.12%. Iamgold Corporation has a consensus target price of $5.85, indicating a potential upside of 8.94%. Given Kinross Gold Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Kinross Gold Corporation is more favorable than Iamgold Corporation.
Earnings and Valuation
This table compares Kinross Gold Corporation and Iamgold Corporation’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Kinross Gold Corporation | $3.48 billion | 1.49 | $1.04 billion | $0.05 | 83.42 |
| Iamgold Corporation | $1.03 billion | 2.42 | $330.30 million | $1.07 | 5.02 |
Kinross Gold Corporation has higher revenue and earnings than Iamgold Corporation. Iamgold Corporation is trading at a lower price-to-earnings ratio than Kinross Gold Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
60.3% of Kinross Gold Corporation shares are owned by institutional investors. Comparatively, 57.3% of Iamgold Corporation shares are owned by institutional investors. 1.0% of Kinross Gold Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Kinross Gold Corporation has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Iamgold Corporation has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500.
Summary
Kinross Gold Corporation beats Iamgold Corporation on 11 of the 14 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 Iamgold Corporation
IAMGOLD Corporation (IAMGOLD) is engaged primarily in the exploration for, and the development and production of, mineral resource properties throughout the world. Through its holdings, IAMGOLD has interests in various operations, exploration and development properties. IAMGOLD is a mid-tier mining company with approximately four operating gold mines on over three continents. The Company’s gold mine segment is divided into geographic segments, such as Burkina Faso - Essakane mine; Suriname-Rosebel mine; Canada-Doyon division, which includes the Westwood mine and the Doyon mine, and Joint ventures (Mali)-Sadiola mine (41%) and Yatela mine (40%). The Company’s non-gold segments are divided into Exploration and evaluation, and Corporate, which includes royalty interests located in Canada and investments in associates and joint ventures. In Canada, the Company owns the Westwood mine in Quebec and the Cote Gold project, a development project located in Ontario.
Receive News & Ratings for Kinross Gold Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kinross Gold Corporation and related companies with MarketBeat.com's FREE daily email newsletter.
