Contrasting A-Mark Precious Metals (AMRK) and Yamana Gold (AUY)

A-Mark Precious Metals (NASDAQ: AMRK) and Yamana Gold (NYSE:AUY) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

19.7% of A-Mark Precious Metals shares are owned by institutional investors. Comparatively, 40.6% of Yamana Gold shares are owned by institutional investors. 38.8% of A-Mark Precious Metals shares are owned by company insiders. Comparatively, 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 will outperform the market over the long term.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. A-Mark Precious Metals pays out 40.5% of its earnings in the form of a dividend. Yamana Gold pays out -5.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

A-Mark Precious Metals has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Yamana Gold has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Profitability

This table compares A-Mark Precious Metals and Yamana Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A-Mark Precious Metals 0.08% 7.75% 1.09%
Yamana Gold -20.19% 0.71% 0.37%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for A-Mark Precious Metals and Yamana Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A-Mark Precious Metals 0 1 1 1 3.00
Yamana Gold 1 6 2 0 2.11

A-Mark Precious Metals presently has a consensus target price of $20.90, indicating a potential upside of 66.40%. Yamana Gold has a consensus target price of $3.54, indicating a potential upside of 42.07%. Given A-Mark Precious Metals’ stronger consensus rating and higher possible upside, analysts plainly believe A-Mark Precious Metals is more favorable than Yamana Gold.

Earnings & Valuation

This table compares A-Mark Precious Metals and Yamana Gold’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
A-Mark Precious Metals $6.99 billion 0.01 $7.08 million $0.79 15.90
Yamana Gold $1.79 billion 1.32 -$307.90 million ($0.40) -6.23

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

Summary

A-Mark Precious Metals beats Yamana Gold on 11 of the 17 factors compared between the two stocks.

About A-Mark Precious Metals

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

About Yamana Gold

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.

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