Contrasting Northern Dynasty Minerals (NYSE:NAK) and Coeur Mining (NYSE:CDE)

Northern Dynasty Minerals (NYSE:NAK) and Coeur Mining (NYSE:CDE) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Northern Dynasty Minerals and Coeur Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Dynasty Minerals 0 1 1 0 2.50
Coeur Mining 0 5 3 0 2.38

Northern Dynasty Minerals currently has a consensus price target of $0.98, indicating a potential upside of 202.80%. Coeur Mining has a consensus price target of $8.72, indicating a potential downside of 15.76%. Given Northern Dynasty Minerals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Northern Dynasty Minerals is more favorable than Coeur Mining.

Valuation and Earnings

This table compares Northern Dynasty Minerals and Coeur Mining’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northern Dynasty Minerals N/A N/A -$52.14 million ($0.14) -2.30
Coeur Mining $711.50 million 3.55 -$341.20 million ($0.25) -41.40

Northern Dynasty Minerals has higher earnings, but lower revenue than Coeur Mining. Coeur Mining is trading at a lower price-to-earnings ratio than Northern Dynasty Minerals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

4.6% of Northern Dynasty Minerals shares are owned by institutional investors. Comparatively, 56.4% of Coeur Mining shares are owned by institutional investors. 1.6% of Coeur Mining shares are owned by 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.

Volatility & Risk

Northern Dynasty Minerals has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, Coeur Mining has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Profitability

This table compares Northern Dynasty Minerals and Coeur Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northern Dynasty Minerals N/A -43.03% -39.10%
Coeur Mining -34.20% 5.56% 2.69%

Summary

Northern Dynasty Minerals beats Coeur Mining on 7 of the 13 factors compared between the two stocks.

Northern Dynasty Minerals Company Profile

Northern Dynasty Minerals Ltd. engages in the exploration of mineral properties in the United States. Its principal mineral property is the Pebble copper-gold-molybdenum project comprising 2,402 mineral claims that covers an area of approximately 417 square miles located in southwest Alaska. The company was formerly known as Northern Dynasty Explorations Ltd. and changed its name to Northern Dynasty Minerals Ltd. in October 1997. Northern Dynasty Minerals Ltd. was incorporated in 1983 and is headquartered in Vancouver, Canada.

Coeur Mining Company Profile

Coeur Mining, Inc. explores for, develops, and produces gold, silver, zinc, and lead properties. The company holds 100% interests in the Palmarejo gold and silver mine covering an area of approximately 112,520 net acres located in Mexico; the Rochester silver and gold mine covers an area of approximately 16,494 net acres situated in Nevada; the Kensington gold mine comprising 12,336 net acres located in Alaska; the Wharf gold mine covering an area of approximately 7,852 net acres situated in South Dakota; and the Silvertip silver-zinc-lead mine comprising 90,156 net acres located in British Columbia, Canada. It also owns interests in the Sterling gold project and the Crown Block of deposits located in the Walker Lane trend in Nevada; and the La Preciosa silver-gold exploration project located in the State of Durango, Mexico. The company markets its concentrates to third-party refiners and smelters in the United States, Switzerland, and Japan. 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.

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