Yamana Gold (NYSE: AUY) and BHP Billiton (NYSE:BHP) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. BHP Billiton pays an annual dividend of $1.72 per share and has a dividend yield of 3.7%. Yamana Gold pays out -5.4% of its earnings in the form of a dividend. BHP Billiton pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
40.2% of Yamana Gold shares are owned by institutional investors. Comparatively, 3.3% of BHP Billiton shares are owned by institutional investors. 2.7% of Yamana Gold shares are owned by company insiders. Comparatively, 0.0% of BHP Billiton shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Yamana Gold and BHP Billiton’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Valuation & Earnings
This table compares Yamana Gold and BHP Billiton’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
BHP Billiton has higher revenue and earnings than Yamana Gold. Yamana Gold is trading at a lower price-to-earnings ratio than BHP Billiton, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Yamana Gold and BHP Billiton, as reported by MarketBeat.com.
||Strong Buy Ratings
Yamana Gold currently has a consensus price target of $3.61, indicating a potential upside of 10.53%. BHP Billiton has a consensus price target of $38.60, indicating a potential downside of 17.51%. Given Yamana Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Yamana Gold is more favorable than BHP Billiton.
Risk and Volatility
Yamana Gold has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, BHP Billiton has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
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.
BHP Billiton Company Profile
BHP Billiton Limited is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.
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