Critical Review: Kinross Gold Corporation (KGC) & The Competition

Kinross Gold Corporation (NYSE: KGC) is one of 68 publicly-traded companies in the “Gold Mining” industry, but how does it weigh in compared to its peers? We will compare Kinross Gold Corporation to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Institutional & Insider Ownership

55.5% of Kinross Gold Corporation shares are held by institutional investors. Comparatively, 43.6% of shares of all “Gold Mining” companies are held by institutional investors. 1.0% of Kinross Gold Corporation shares are held by company insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Kinross Gold Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinross Gold Corporation 0 6 6 0 2.50
Kinross Gold Corporation Competitors 484 1848 2173 49 2.39

Kinross Gold Corporation currently has a consensus price target of $4.88, suggesting a potential upside of 13.44%. As a group, “Gold Mining” companies have a potential upside of 47.95%. Given Kinross Gold Corporation’s peers higher possible upside, analysts plainly believe Kinross Gold Corporation has less favorable growth aspects than its peers.

Risk and Volatility

Kinross Gold Corporation has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500. Comparatively, Kinross Gold Corporation’s peers have a beta of -0.18, suggesting that their average stock price is 118% less volatile than the S&P 500.

Profitability

This table compares Kinross Gold Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinross Gold Corporation 3.28% 2.58% 1.39%
Kinross Gold Corporation Competitors -2,700.76% -9.25% -4.38%

Earnings and Valuation

This table compares Kinross Gold Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Kinross Gold Corporation $3.47 billion -$104.00 million 43.05
Kinross Gold Corporation Competitors $2.41 billion -$32.21 million 167.70

Kinross Gold Corporation has higher revenue, but lower earnings than its peers. Kinross Gold Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Kinross Gold Corporation beats its peers on 8 of the 13 factors compared.

Kinross Gold Corporation Company Profile

Kinross Gold Corporation is a gold mining company. The Company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. The Company’s segments include Fort Knox, Round Mountain, Bald Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. Fort Knox is an open-pit gold mine located in Fairbanks, Alaska. Round Mountain open-pit mine is located in Nye County, Nevada. Bald Mountain open-pit mine is located in Nevada. Kettle River-Buckhorn mine is located in northern Washington State. The Kupol segment includes the Kupol and Dvoinoye mines. Paracatu is a gold mine located in the State of Minas Gerais, Brazil. Maricunga open pit mine is located in Copiapo, Chile. Tasiast mine is located in north-western Mauritania. Chirano is located in southwestern Ghana.

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