Comparing Newmont Mining (NEM) & The Competition

Newmont Mining (NYSE: NEM) is one of 61 publicly-traded companies in the “Gold Mining” industry, but how does it weigh in compared to its peers? We will compare Newmont Mining to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, dividends and analyst recommendations.

Dividends

Newmont Mining pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Newmont Mining pays out 42.9% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 1.0% and pay out 49.1% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Newmont Mining and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newmont Mining 1 6 8 0 2.47
Newmont Mining Competitors 471 1831 2140 48 2.39

Newmont Mining currently has a consensus target price of $40.70, suggesting a potential upside of 10.47%. As a group, “Gold Mining” companies have a potential downside of 89.16%. Given Newmont Mining’s stronger consensus rating and higher possible upside, research analysts plainly believe Newmont Mining is more favorable than its peers.

Institutional & Insider Ownership

82.0% of Newmont Mining shares are owned by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are owned by institutional investors. 0.3% of Newmont Mining shares are owned by company insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are owned 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.

Risk and Volatility

Newmont Mining has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Newmont Mining’s peers have a beta of -0.12, suggesting that their average stock price is 112% less volatile than the S&P 500.

Profitability

This table compares Newmont Mining and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newmont Mining 1.18% 6.20% 3.55%
Newmont Mining Competitors -2,998.75% -8.66% -3.99%

Valuation and Earnings

This table compares Newmont Mining and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Newmont Mining $6.71 billion -$627.00 million 52.63
Newmont Mining Competitors $2.41 billion -$32.21 million 4,504.55

Newmont Mining has higher revenue, but lower earnings than its peers. Newmont Mining is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Newmont Mining beats its peers on 10 of the 15 factors compared.

Newmont Mining Company Profile

Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company’s segments include North America, South America, Asia Pacific and Africa. The Company’s North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in the state of Nevada, and Cripple Creek &Victor (CC&V) in the state of Colorado, in the United States. The Company’s South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Company’s Asia Pacific segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Company’s Africa segment consists primarily of Ahafo and Akyem in Ghana. As of December 31, 2016, it had gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles (59,000 square kilometers).

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