Tahoe Resources (NYSE:TAHO) and Newmont Mining (NYSE:NEM) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

67.1% of Tahoe Resources shares are held by institutional investors. Comparatively, 83.8% of Newmont Mining shares are held by institutional investors. 0.4% of Newmont Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tahoe Resources and Newmont Mining’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tahoe Resources $733.60 million 1.60 $81.79 million $0.27 13.89
Newmont Mining $7.35 billion 2.53 -$98.00 million $1.46 23.89

Tahoe Resources has higher earnings, but lower revenue than Newmont Mining. Tahoe Resources is trading at a lower price-to-earnings ratio than Newmont Mining, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Tahoe Resources and Newmont Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tahoe Resources 0 3 2 0 2.40
Newmont Mining 1 6 8 0 2.47

Tahoe Resources presently has a consensus target price of $5.00, indicating a potential upside of 33.33%. Newmont Mining has a consensus target price of $41.07, indicating a potential upside of 17.75%. Given Tahoe Resources’ higher probable upside, equities analysts clearly believe Tahoe Resources is more favorable than Newmont Mining.

Volatility & Risk

Tahoe Resources has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, Newmont Mining has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Dividends

Newmont Mining pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. Tahoe Resources does not pay a dividend. Newmont Mining pays out 38.4% of its earnings in the form of a dividend. Newmont Mining has increased its dividend for 3 consecutive years.

Profitability

This table compares Tahoe Resources and Newmont Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tahoe Resources -46.41% -2.31% -1.96%
Newmont Mining -2.63% 6.19% 3.50%

Summary

Newmont Mining beats Tahoe Resources on 13 of the 17 factors compared between the two stocks.

About Tahoe Resources

Tahoe Resources Inc., together with its subsidiaries, acquires, explores for, develops, and operates mineral properties in the Americas. It explores for silver, gold, lead, zinc, and copper deposits, as well as precious metals assets. The company holds interest in the La Arena gold mine located in the Huamachuco district of northern Peru; Shahuindo mine located in the province of Cajabamba in northern Peru; and La Arena II, a copper-gold porphyry deposit located in Peru. It also holds interest in the Timmins mines, including the Bell Creek and Timmins West mines, the Fenn-Gib project, the Juby project, the Vogel project, and the Gold River project located in Timmins, Ontario. The company was formerly known as CKM Resources Inc. and changed its name to Tahoe Resources Inc. in January 2010. Tahoe Resources Inc. was incorporated in 2009 and is headquartered in Reno, Nevada.

About Newmont Mining

Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver. Its operations and/or assets are located in the United States, Australia, Peru, Ghana, and Suriname. As of February 22, 2018, the company had proven and probable gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles. Newmont Mining Corporation was founded in 1916 and is headquartered in Greenwood Village, Colorado.

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