Coeur Mining (CDE) versus Agnico Eagle Mines (AEM) Critical Survey

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

Valuation and Earnings

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This table compares Coeur Mining and Agnico Eagle Mines’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coeur Mining $709.60 million 2.17 -$1.31 million $0.02 415.50
Agnico Eagle Mines $2.24 billion 4.51 $243.88 million $1.11 39.08

Agnico Eagle Mines has higher revenue and earnings than Coeur Mining. Agnico Eagle Mines is trading at a lower price-to-earnings ratio than Coeur Mining, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Coeur Mining and Agnico Eagle Mines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coeur Mining -0.17% 1.51% 0.81%
Agnico Eagle Mines 10.88% 5.19% 3.28%

Institutional & Insider Ownership

75.7% of Coeur Mining shares are owned by institutional investors. Comparatively, 56.5% of Agnico Eagle Mines shares are owned by institutional investors. 1.3% of Coeur Mining shares are owned by insiders. Comparatively, 0.5% of Agnico Eagle Mines shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Agnico Eagle Mines pays an annual dividend of $0.44 per share and has a dividend yield of 1.0%. Coeur Mining does not pay a dividend. Agnico Eagle Mines pays out 39.6% of its earnings in the form of a dividend. Agnico Eagle Mines has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Coeur Mining and Agnico Eagle Mines, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coeur Mining 0 2 5 0 2.71
Agnico Eagle Mines 0 5 7 0 2.58

Coeur Mining presently has a consensus price target of $9.80, suggesting a potential upside of 17.93%. Agnico Eagle Mines has a consensus price target of $56.33, suggesting a potential upside of 29.86%. Given Agnico Eagle Mines’ higher probable upside, analysts clearly believe Agnico Eagle Mines is more favorable than Coeur Mining.

Risk & Volatility

Coeur Mining has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines has a beta of -0.43, indicating that its share price is 143% less volatile than the S&P 500.

Summary

Agnico Eagle Mines beats Coeur Mining on 11 of the 17 factors compared between the two stocks.

Coeur Mining Company Profile

Coeur Mining, Inc. owns, operates, explores for, and develops silver and gold properties. It holds interests in the Palmarejo silver-gold complex located in Mexico; the Silvertip silver-zinc-lead mine located in British Columbia; the Rochester silver-gold mine located in Nevada; the Kensington gold mine located in Alaska; and the Wharf gold mine located in South Dakota. The Company also owns interest in the La Preciosa silver-gold project located in the State of Durango in northern Mexico. Coeur Mining, Inc. markets its silver and gold concentrates to third-party refiners and smelters in the United States and China. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.

Agnico Eagle Mines Company Profile

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. It operates through three segments: Northern Business, Southern Business, and Exploration. The company primarily produces and sells gold, as well as explores for silver, zinc, and copper. Its flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December, 31, 2016, the LaRonde mine had a proven and probable mineral reserve of approximately 3.05 million ounces of gold. The company has exploration activities in Canada, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was founded in 1953 and is headquartered in Toronto, Canada.

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