Analyzing Newmont Mining Corporation (NEM) and The Competition
Newmont Mining Corporation (NYSE: NEM) is one of 73 publicly-traded companies in the “Gold Mining” industry, but how does it weigh in compared to its rivals? We will compare Newmont Mining Corporation to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, institutional ownership, dividends and profitability.
Risk & Volatility
Newmont Mining Corporation has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Newmont Mining Corporation’s rivals have a beta of -0.28, suggesting that their average stock price is 128% less volatile than the S&P 500.
Earnings and Valuation
This table compares Newmont Mining Corporation and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Newmont Mining Corporation||$6.71 billion||-$627.00 million||51.49|
|Newmont Mining Corporation Competitors||$2.41 billion||-$32.21 million||159.38|
Newmont Mining Corporation has higher revenue, but lower earnings than its rivals. Newmont Mining Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
80.0% of Newmont Mining Corporation 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 Corporation shares are owned by company insiders. Comparatively, 8.3% of shares of all “Gold Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Newmont Mining Corporation pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Newmont Mining Corporation pays out 42.9% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 0.9% and pay out 57.1% of their earnings in the form of a dividend.
This is a breakdown of recent ratings for Newmont Mining Corporation and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Newmont Mining Corporation||1||5||9||0||2.53|
|Newmont Mining Corporation Competitors||483||1830||2169||49||2.39|
Newmont Mining Corporation presently has a consensus price target of $40.31, suggesting a potential upside of 11.85%. As a group, “Gold Mining” companies have a potential upside of 50.19%. Given Newmont Mining Corporation’s rivals higher probable upside, analysts clearly believe Newmont Mining Corporation has less favorable growth aspects than its rivals.
This table compares Newmont Mining Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Newmont Mining Corporation||1.18%||6.20%||3.55%|
|Newmont Mining Corporation Competitors||-2,700.88%||-9.22%||-4.37%|
Newmont Mining Corporation beats its rivals on 9 of the 15 factors compared.
Newmont Mining Corporation 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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