Yamana Gold (NYSE: AUY) and Nexa Resources (NYSE:NEXA) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Insider and Institutional Ownership

40.6% of Yamana Gold shares are owned by institutional investors. 2.7% of Yamana Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Yamana Gold and Nexa Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yamana Gold -20.19% 0.71% 0.37%
Nexa Resources 2.88% 2.16% 1.09%

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. Nexa Resources does not pay a dividend. Yamana Gold pays out -5.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Yamana Gold and Nexa Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yamana Gold 1 6 2 0 2.11
Nexa Resources 0 0 5 0 3.00

Yamana Gold presently has a consensus target price of $3.54, indicating a potential upside of 42.07%. Nexa Resources has a consensus target price of $21.52, indicating a potential upside of 28.10%. Given Yamana Gold’s higher probable upside, research analysts clearly believe Yamana Gold is more favorable than Nexa Resources.

Valuation & Earnings

This table compares Yamana Gold and Nexa Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yamana Gold $1.79 billion 1.32 -$307.90 million ($0.40) -6.23
Nexa Resources $1.91 billion 0.99 $93.16 million $0.51 32.94

Nexa Resources has higher revenue and earnings than Yamana Gold. Yamana Gold is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Nexa Resources beats Yamana Gold on 8 of the 15 factors compared between the two stocks.

Yamana Gold Company Profile

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

Nexa Resources Company Profile

Nexa Resources SA, formerly VM Holding SA, is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

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