Yamana Gold (NYSE:AUY) versus Kinross Gold (KGC) Financial Analysis

Yamana Gold (NYSE:AUY) and Kinross Gold (NYSE:KGC) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

42.1% of Yamana Gold shares are held by institutional investors. Comparatively, 53.7% of Kinross Gold shares are held by institutional investors. 2.7% of Yamana Gold shares are held by company insiders. Comparatively, 1.0% of Kinross Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Yamana Gold and Kinross Gold’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yamana Gold $1.80 billion 1.39 -$194.40 million $0.08 33.00
Kinross Gold $3.30 billion 1.09 $445.40 million $0.14 20.57

Kinross Gold has higher revenue and earnings than Yamana Gold. Kinross Gold is trading at a lower price-to-earnings ratio than Yamana Gold, indicating that it is currently the more affordable of the two stocks.

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. Kinross Gold does not pay a dividend. Yamana Gold pays out 25.0% of its earnings in the form of a dividend.

Volatility & Risk

Yamana Gold has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Yamana Gold and Kinross Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yamana Gold 1 3 8 0 2.58
Kinross Gold 1 8 3 0 2.17

Yamana Gold currently has a consensus target price of $3.79, indicating a potential upside of 43.40%. Kinross Gold has a consensus target price of $4.28, indicating a potential upside of 48.74%. Given Kinross Gold’s higher probable upside, analysts plainly believe Kinross Gold is more favorable than Yamana Gold.

Profitability

This table compares Yamana Gold and Kinross Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yamana Gold -15.63% 3.49% 1.77%
Kinross Gold 11.67% 5.73% 3.22%

Summary

Kinross Gold beats Yamana Gold on 9 of the 16 factors compared between the two stocks.

Yamana Gold Company Profile

Yamana Gold Inc. operates as a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina. It primarily sells precious metals, including gold, silver, and copper. The company was formerly known as Yamana Resources Inc. and changed its name to Yamana Gold Inc. in July 2003. Yamana Gold Inc. was founded in 1980 and is based in Toronto, Canada.

Kinross Gold Company Profile

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, extraction, and processing of gold-containing ore. It also engages in the reclamation of gold mining properties; and production and sale of silver. The company's gold production and exploration activities are carried out principally in Canada, the United States, Russia, Brazil, Chile, Ghana, and Mauritania. The company was founded in 1972 and is headquartered in Toronto, Canada.

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