Buenaventura Mining (BVN) vs. Newmont Mining Corporation (NEM) Head-To-Head Analysis
Buenaventura Mining (NYSE: BVN) and Newmont Mining Corporation (NYSE:NEM) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.
This table compares Buenaventura Mining and Newmont Mining Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Newmont Mining Corporation||-6.73%||6.67%||3.82%|
Earnings and Valuation
This table compares Buenaventura Mining and Newmont Mining Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Buenaventura Mining||$1.09 billion||3.53||$290.92 million||($1.44)||-8.67|
|Newmont Mining Corporation||$7.11 billion||2.69||$2.76 billion||($0.90)||-39.81|
Newmont Mining Corporation has higher revenue and earnings than Buenaventura Mining. Newmont Mining Corporation is trading at a lower price-to-earnings ratio than Buenaventura Mining, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Buenaventura Mining and Newmont Mining Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Newmont Mining Corporation||1||5||11||0||2.59|
Buenaventura Mining currently has a consensus target price of $15.10, indicating a potential upside of 20.90%. Newmont Mining Corporation has a consensus target price of $41.93, indicating a potential upside of 17.03%. Given Buenaventura Mining’s higher possible upside, equities analysts plainly believe Buenaventura Mining is more favorable than Newmont Mining Corporation.
Insider and Institutional Ownership
49.3% of Buenaventura Mining shares are held by institutional investors. Comparatively, 82.2% of Newmont Mining Corporation shares are held by institutional investors. 19.3% of Buenaventura Mining shares are held by company insiders. Comparatively, 0.3% of Newmont Mining Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Buenaventura Mining pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Newmont Mining Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Buenaventura Mining pays out -5.6% of its earnings in the form of a dividend. Newmont Mining Corporation pays out -22.2% 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.
Volatility and Risk
Buenaventura Mining has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Newmont Mining Corporation has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.
Newmont Mining Corporation beats Buenaventura Mining on 10 of the 15 factors compared between the two stocks.
About Buenaventura Mining
Compania de Minas Buenaventura S.A.A. (Buenaventura) is a precious metals company. The Company is engaged in the exploration, mining and processing of gold, silver and other metals in Peru. The Company’s segments include Production and sale of minerals; Exploration and development activities; Construction and engineering services; Energy generation and transmission services; Insurance brokerage; Rental of mining concessions; Holding of investment in shares (mainly in Minera Yanacocha S.R.L. and S.M.R.L. Chaupiloma Dos de Cajamarca), and Industrial activities. The Company operates the Orcopampa, Uchucchacua, Julcani, Mallay and Breapampa mines and has controlling interests in over three other mining companies, which operate the Colquijirca-Marcapunta, Tantahuatay and La Zanja mines. It also owns an electric power transmission company, a hydroelectric plant, a processing plant and an engineering services consulting company and non-controlling interests in various other mining companies.
About Newmont Mining Corporation
Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company’s segments include North America, South America, Asia Pacific and Africa. The Company’s North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in the state of Nevada, and Cripple Creek &Victor (CC&V) in the state of Colorado, in the United States. The Company’s South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Company’s Asia Pacific segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Company’s Africa segment consists primarily of Ahafo and Akyem in Ghana. As of December 31, 2016, it had gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles (59,000 square kilometers).
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