Reviewing Agnico Eagle Mines (AEM) & The Competition

Agnico Eagle Mines (NYSE: AEM) is one of 61 publicly-traded companies in the “Gold Mining” industry, but how does it contrast to its competitors? We will compare Agnico Eagle Mines to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Agnico Eagle Mines and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agnico Eagle Mines 12.47% 5.61% 3.55%
Agnico Eagle Mines Competitors -2,998.75% -8.66% -3.99%

Earnings and Valuation

This table compares Agnico Eagle Mines and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Agnico Eagle Mines $2.14 billion $158.82 million 36.90
Agnico Eagle Mines Competitors $2.41 billion -$32.21 million 4,504.55

Agnico Eagle Mines’ competitors have higher revenue, but lower earnings than Agnico Eagle Mines. Agnico Eagle Mines is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Agnico Eagle Mines has a beta of -0.73, indicating that its stock price is 173% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines’ competitors have a beta of -0.12, indicating that their average stock price is 112% less volatile than the S&P 500.

Dividends

Agnico Eagle Mines pays an annual dividend of $0.44 per share and has a dividend yield of 1.0%. Agnico Eagle Mines pays out 37.6% 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. Agnico Eagle Mines has increased its dividend for 5 consecutive years. Agnico Eagle Mines is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and target prices for Agnico Eagle Mines and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agnico Eagle Mines 0 3 5 0 2.63
Agnico Eagle Mines Competitors 471 1831 2140 48 2.39

Agnico Eagle Mines currently has a consensus target price of $54.93, suggesting a potential upside of 27.24%. As a group, “Gold Mining” companies have a potential downside of 89.25%. Given Agnico Eagle Mines’ stronger consensus rating and higher probable upside, analysts clearly believe Agnico Eagle Mines is more favorable than its competitors.

Institutional & Insider Ownership

58.4% of Agnico Eagle Mines shares are held by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are held by institutional investors. 0.5% of Agnico Eagle Mines shares are held by company insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Agnico Eagle Mines beats its competitors on 10 of the 15 factors compared.

Agnico Eagle Mines Company Profile

Agnico Eagle Mines Ltd is a Canada-based gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut, as well as exploration activities in Canada, Europe, Latin America and the United States. It operates through the business units: Northern Business, which consists of its operations in Canada and Finland, such as the LaRonde mine, the Lapa mine, the Goldex mine, the Meadowbank mine, the Meliadine project and the Malartic Mine in Canada, as well as the Kittila mine in Finland; Southern Business, which consists of its operations in Mexico, such as the Pinos Altos mine that includes the Creston Mascota deposit and the La India mine owned by its indirect subsidiary, as well as Exploration Group, which focuses on the identification of new mineral reserves and mineral resources, and new development opportunities in gold producing regions. Its exploration activities are concentrated in Canada, Europe, Latin America and the United States.

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