Head to Head Analysis: IAMGOLD (IAG) and Barrick Gold (ABX)
IAMGOLD (NYSE: IAG) and Barrick Gold (NYSE:ABX) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Barrick Gold pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. IAMGOLD does not pay a dividend. Barrick Gold pays out 6.4% of its earnings in the form of a dividend.
55.8% of IAMGOLD shares are owned by institutional investors. Comparatively, 55.8% of Barrick Gold shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares IAMGOLD and Barrick Gold’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IAMGOLD||$987.10 million||2.48||$52.60 million||$1.09||4.83|
|Barrick Gold||$8.56 billion||1.78||$655.00 million||$1.87||6.98|
Barrick Gold has higher revenue and earnings than IAMGOLD. IAMGOLD is trading at a lower price-to-earnings ratio than Barrick Gold, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for IAMGOLD and Barrick Gold, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IAMGOLD presently has a consensus target price of $7.12, suggesting a potential upside of 35.31%. Barrick Gold has a consensus target price of $18.37, suggesting a potential upside of 40.63%. Given Barrick Gold’s higher probable upside, analysts plainly believe Barrick Gold is more favorable than IAMGOLD.
This table compares IAMGOLD and Barrick Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
IAMGOLD has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500. Comparatively, Barrick Gold has a beta of -0.35, indicating that its share price is 135% less volatile than the S&P 500.
Barrick Gold beats IAMGOLD on 8 of the 15 factors compared between the two stocks.
IAMGOLD 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.
Barrick Gold Company Profile
Barrick Gold Corporation (Barrick) is a gold mining company. The Company is principally engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary, Acacia, owns gold mines and exploration properties in Africa. It also holds interest in gold mines, including Porgera and Kalgoorlie, and copper mines, such as Zaldivar and Lumwana. The Pascua-Lama project is located on the border between Chile and Argentina. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.
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