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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Yamana Gold and Turquoise Hill Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yamana Gold 1 6 2 0 2.11
Turquoise Hill Resources 0 3 2 0 2.40

Yamana Gold currently has a consensus price target of $3.73, suggesting a potential upside of 25.84%. Turquoise Hill Resources has a consensus price target of $5.00, suggesting a potential upside of 48.81%. Given Turquoise Hill Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Turquoise Hill Resources is more favorable than Yamana Gold.

Profitability

This table compares Yamana Gold and Turquoise Hill Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yamana Gold -23.63% 0.42% 0.22%
Turquoise Hill Resources 14.20% 1.60% 1.01%

Volatility & Risk

Yamana Gold has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Turquoise Hill Resources has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Insider and Institutional Ownership

42.4% of Yamana Gold shares are owned by institutional investors. Comparatively, 32.9% of Turquoise Hill Resources shares are owned by institutional investors. 2.7% of Yamana Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Yamana Gold and Turquoise Hill Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Yamana Gold $1.78 billion 1.58 $541.80 million ($0.45) -6.58
Turquoise Hill Resources $892.02 million 7.58 $159.41 million $0.06 56.01

Yamana Gold has higher revenue and earnings than Turquoise Hill Resources. Yamana Gold is trading at a lower price-to-earnings ratio than Turquoise Hill Resources, 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 0.7%. Turquoise Hill Resources does not pay a dividend. Yamana Gold pays out -4.4% of its earnings in the form of a dividend.

Summary

Yamana Gold beats Turquoise Hill Resources on 8 of the 15 factors compared between the two stocks.

About Yamana Gold

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

About Turquoise Hill Resources

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

Receive News & Stock Ratings for Yamana Gold Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Yamana Gold Inc. and related stocks with our FREE daily email newsletter.