Klondex Mines (NASDAQ: KLDX) and Agnico Eagle Mines Limited (NYSE:AEM) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Dividends

Agnico Eagle Mines Limited pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Klondex Mines does not pay a dividend. Agnico Eagle Mines Limited pays out 36.7% of its earnings in the form of a dividend. Agnico Eagle Mines Limited has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Klondex Mines and Agnico Eagle Mines Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Klondex Mines $240.24 million 2.66 $51.03 million N/A N/A
Agnico Eagle Mines Limited $2.21 billion 4.89 $932.83 million $1.09 42.88

Agnico Eagle Mines Limited has higher revenue and earnings than Klondex Mines.

Profitability

This table compares Klondex Mines and Agnico Eagle Mines Limited’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
Agnico Eagle Mines Limited 11.32% 5.38% 3.40%

Institutional & Insider Ownership

59.0% of Agnico Eagle Mines Limited shares are held by institutional investors. 0.5% of Agnico Eagle Mines Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Klondex Mines and Agnico Eagle Mines Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Klondex Mines 0 0 2 0 3.00
Agnico Eagle Mines Limited 1 3 5 0 2.44

Klondex Mines currently has a consensus target price of $6.25, indicating a potential upside of 73.37%. Agnico Eagle Mines Limited has a consensus target price of $55.64, indicating a potential upside of 19.05%. Given Klondex Mines’ stronger consensus rating and higher possible upside, analysts clearly believe Klondex Mines is more favorable than Agnico Eagle Mines Limited.

Summary

Agnico Eagle Mines Limited beats Klondex Mines on 11 of the 15 factors compared between the two stocks.

Klondex Mines Company Profile

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.

Agnico Eagle Mines Limited Company Profile

Agnico Eagle Mines Limited is a gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. The Company operates through three business units. The Northern Business consists of its operations in Canada and Finland. The Company’s Canadian properties include the LaRonde mine, the Lapa mine, the Goldex mine, the Meadowbank mine and the Meliadine project, and Canadian Malartic Mine. The operations in Finland include the Kittila mine. The Southern Business consists of its operations in Mexico. Its Pinos Altos mine includes the Creston Mascota deposit. The La India mine is owned by its indirect subsidiary. Its Exploration group 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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