Iamgold (NYSE:IAG) and Jaguar Mining (OTCMKTS:JAGGF) Critical Contrast

Jaguar Mining (OTCMKTS:JAGGF) and Iamgold (NYSE:IAG) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Volatility & Risk

Jaguar Mining has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Iamgold has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares Jaguar Mining and Iamgold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$158.63 million	3.12	-$1.29 million	($0.19)	-30.52
Iamgold	$1.63 billion	6.97	$819.60 million	$0.60	32.08

Iamgold has higher revenue and earnings than Jaguar Mining. Jaguar Mining is trading at a lower price-to-earnings ratio than Iamgold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Jaguar Mining and Iamgold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	-10.83%	3.72%	2.55%
Iamgold	15.39%	10.39%	6.72%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Jaguar Mining and Iamgold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
Iamgold	0	3	5	2	2.90

Iamgold has a consensus price target of $17.25, indicating a potential downside of 10.39%. Given Iamgold’s stronger consensus rating and higher possible upside, analysts plainly believe Iamgold is more favorable than Jaguar Mining.

Institutional & Insider Ownership

47.1% of Iamgold shares are held by institutional investors. 0.6% of Jaguar Mining shares are held by company insiders. Comparatively, 0.2% of Iamgold shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Iamgold beats Jaguar Mining on 14 of the 15 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.