Kinross Gold Corporation (NYSE: KGC) and Buenaventura Mining (NYSE:BVN) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

Buenaventura Mining pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Kinross Gold Corporation does not pay a dividend. Buenaventura Mining pays out -5.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings for Kinross Gold Corporation and Buenaventura Mining, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinross Gold Corporation 0 6 5 1 2.58
Buenaventura Mining 0 1 1 0 2.50

Kinross Gold Corporation currently has a consensus price target of $5.17, suggesting a potential upside of 10.67%. Buenaventura Mining has a consensus price target of $15.10, suggesting a potential upside of 13.28%. Given Buenaventura Mining’s higher probable upside, analysts plainly believe Buenaventura Mining is more favorable than Kinross Gold Corporation.

Earnings and Valuation

This table compares Kinross Gold Corporation and Buenaventura Mining’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 1.67 $1.04 billion $0.05 93.42
Buenaventura Mining $1.09 billion 3.77 $290.92 million ($1.44) -9.26

Kinross Gold Corporation has higher revenue and earnings than Buenaventura Mining. Buenaventura Mining 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 and Institutional Ownership

59.6% of Kinross Gold Corporation shares are owned by institutional investors. Comparatively, 44.9% of Buenaventura Mining shares are owned by institutional investors. 1.0% of Kinross Gold Corporation shares are owned by insiders. Comparatively, 19.3% of Buenaventura Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Kinross Gold Corporation has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Buenaventura Mining has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares Kinross Gold Corporation and Buenaventura Mining’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%
Buenaventura Mining -33.54% -11.01% -7.92%

Summary

Kinross Gold Corporation beats Buenaventura Mining on 10 of the 16 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 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.

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