Klondex Mines (NASDAQ: KLDX) and Newmont Mining Corporation (NYSE:NEM) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitabiliy, earnings, institutional ownership and valuation.

Institutional & Insider Ownership

81.7% of Newmont Mining Corporation shares are owned by institutional investors. 0.3% of Newmont Mining Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Newmont Mining Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Klondex Mines does not pay a dividend. Newmont Mining Corporation pays out -16.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and target prices for Klondex Mines and Newmont Mining Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Klondex Mines 0 3 1 0 2.25
Newmont Mining Corporation 1 7 10 0 2.50

Klondex Mines currently has a consensus price target of $6.00, indicating a potential upside of 77.51%. Newmont Mining Corporation has a consensus price target of $41.00, indicating a potential upside of 21.56%. Given Klondex Mines’ higher possible upside, research analysts clearly believe Klondex Mines is more favorable than Newmont Mining Corporation.

Earnings and Valuation

This table compares Klondex Mines and Newmont Mining Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Klondex Mines $203.44 million 2.95 $38.62 million N/A N/A
Newmont Mining Corporation $6.91 billion 2.60 $2.68 billion ($1.19) -28.34

Newmont Mining Corporation has higher revenue and earnings than Klondex Mines.

Profitability

This table compares Klondex Mines and Newmont Mining Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Klondex Mines N/A N/A N/A
Newmont Mining Corporation -8.70% 6.24% 3.60%

Summary

Newmont Mining Corporation beats Klondex Mines on 10 of the 13 factors compared between the two stocks.

About Klondex Mines

Klondex Mines Ltd is a Canada-based gold and silver mining company. The Company focuses on exploration, development and production of over two gold and silver projects in north central Nevada, being the Fire Creek mine located in Lander County, Nevada, the Midas mine and ore milling facility located in Nevada. Its segments include Fire Creek, Midas, True North, and Corporate and other. Its over 1,000 tons per day milling facility processes mineralized materials from the Midas Mine and the Fire Creek Mine. The Midas Mine is a gold-silver vein deposit located a mile from the town of Midas, Nevada. It also owns an underground mine project located in Manitoba, Canada, which includes the Rice Lake Mine and Mill complex, and early-stage exploration properties located in the State of Nevada, the United States, and Manitoba and Ontario, Canada. The Company’s milling and processing facilities are located at Midas process ore from both Midas and Fire Creek in the State of Nevada.

About Newmont Mining Corporation

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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