Coeur Mining (CDE) vs. Newmont Mining (NEM) Head to Head Review

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

Risk and Volatility

Coeur Mining has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Newmont Mining has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Institutional & Insider Ownership

71.3% of Coeur Mining shares are owned by institutional investors. Comparatively, 82.3% of Newmont Mining shares are owned by institutional investors. 1.3% of Coeur Mining shares are owned by insiders. Comparatively, 0.4% of Newmont Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Coeur Mining and Newmont Mining’s 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 2.15 -$1.31 million $0.02 410.50
Newmont Mining $7.35 billion 2.75 -$98.00 million $1.46 25.91

Coeur Mining has higher earnings, but lower revenue than Newmont Mining. Newmont Mining 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 Newmont Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coeur Mining -2.58% -0.77% -0.40%
Newmont Mining 0.64% 7.01% 4.01%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Coeur Mining and Newmont Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coeur Mining 0 3 4 0 2.57
Newmont Mining 1 6 6 0 2.38

Coeur Mining currently has a consensus price target of $9.70, suggesting a potential upside of 18.15%. Newmont Mining has a consensus price target of $43.08, suggesting a potential upside of 13.89%. Given Coeur Mining’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Coeur Mining is more favorable than Newmont Mining.

Dividends

Newmont Mining pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Coeur Mining does not pay a dividend. Newmont Mining pays out 38.4% of its earnings in the form of a dividend. Newmont Mining has raised its dividend for 2 consecutive years.

Summary

Newmont Mining beats Coeur Mining on 10 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.

Newmont Mining Company Profile

Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver. Its operations and/or assets are located in the United States, Australia, Peru, Ghana, and Suriname. As of February 22, 2018, the company had proven and probable gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles. Newmont Mining Corporation was founded in 1916 and is headquartered in Greenwood Village, Colorado.

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