Analyzing Constellium (NYSE:CSTM) & Barrick Mining (NYSE:B)

Barrick Mining (NYSE:B) and Constellium (NYSE:CSTM) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Insider & Institutional Ownership

90.8% of Barrick Mining shares are held by institutional investors. Comparatively, 92.6% of Constellium shares are held by institutional investors. 5.2% of Barrick Mining shares are held by insiders. Comparatively, 1.2% of Constellium shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Barrick Mining and Constellium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barrick Mining	31.60%	16.02%	11.22%
Constellium	5.69%	51.66%	9.63%

Valuation and Earnings

This table compares Barrick Mining and Constellium”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barrick Mining	$16.96 billion	3.86	$4.99 billion	$3.88	10.31
Constellium	$8.45 billion	0.41	$273.00 million	$3.88	6.61

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Barrick Mining and Constellium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barrick Mining	0	4	15	1	2.85
Constellium	0	3	4	0	2.57

Barrick Mining presently has a consensus price target of $53.39, indicating a potential upside of 33.53%. Constellium has a consensus price target of $34.40, indicating a potential upside of 34.22%. Given Constellium’s higher possible upside, analysts plainly believe Constellium is more favorable than Barrick Mining.

Risk & Volatility

Barrick Mining has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Constellium has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Summary

Barrick Mining beats Constellium on 10 of the 14 factors compared between the two stocks.

About Barrick Mining

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
 
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex.  Barrick owns and operates six Tier One gold mines:  Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
 
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.

About Constellium

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of rolled and extruded aluminum products for the packaging, aerospace, automotive, defense, and other transportation and industry end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. This segment also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded aluminium products and aluminium structural components for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and fabricates hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. It sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. The company was incorporated in 2010 and is headquartered in Paris, France.