Klondex Mines (NASDAQ: KLDX) and Iamgold Corporation (NYSE:IAG) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Insider and Institutional Ownership

56.4% of Iamgold Corporation shares are owned by institutional investors. 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Klondex Mines and Iamgold Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Klondex Mines 0 0 1 0 3.00
Iamgold Corporation 0 5 4 0 2.44

Klondex Mines currently has a consensus price target of $6.25, indicating a potential upside of 75.56%. Iamgold Corporation has a consensus price target of $6.96, indicating a potential upside of 5.91%. Given Klondex Mines’ stronger consensus rating and higher possible upside, analysts clearly believe Klondex Mines is more favorable than Iamgold Corporation.

Valuation & Earnings

This table compares Klondex Mines and Iamgold Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Klondex Mines $240.24 million 2.63 $51.03 million N/A N/A
Iamgold Corporation $1.07 billion 2.85 $857.40 million $1.07 6.14

Iamgold Corporation has higher revenue and earnings than Klondex Mines.

Profitability

This table compares Klondex Mines and Iamgold Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Klondex Mines N/A N/A N/A
Iamgold Corporation 46.75% 1.43% 0.95%

Summary

Iamgold Corporation beats Klondex Mines on 8 of the 11 factors compared between the two stocks.

Klondex Mines Company Profile

Klondex Mines Ltd is a Canada-based gold and silver mining company. The Company focuses on exploration, development and production of over two gold and silver projects in north central Nevada, being the Fire Creek mine located in Lander County, Nevada, the Midas mine and ore milling facility located in Nevada. Its segments include Fire Creek, Midas, True North, and Corporate and other. Its over 1,000 tons per day milling facility processes mineralized materials from the Midas Mine and the Fire Creek Mine. The Midas Mine is a gold-silver vein deposit located a mile from the town of Midas, Nevada. It also owns an underground mine project located in Manitoba, Canada, which includes the Rice Lake Mine and Mill complex, and early-stage exploration properties located in the State of Nevada, the United States, and Manitoba and Ontario, Canada. The Company’s milling and processing facilities are located at Midas process ore from both Midas and Fire Creek in the State of Nevada.

Iamgold Corporation Company Profile

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.

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