Financial Survey: Jaguar Mining (OTCMKTS:JAGGF) versus Newmont (NYSE:NEM)

Newmont (NYSE:NEM) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

This table compares Newmont and Jaguar Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newmont	33.42%	20.35%	11.68%
Jaguar Mining	-17.87%	1.41%	1.00%

Valuation & Earnings

This table compares Newmont and Jaguar Mining”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmont	$21.50 billion	4.10	$3.35 billion	$6.44	12.55
Jaguar Mining	$158.63 million	2.21	-$1.29 million	($0.32)	-12.91

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

Analyst Ratings

This is a summary of current recommendations for Newmont and Jaguar Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmont	1	3	14	5	3.00
Jaguar Mining	0	0	0	0	0.00

Newmont currently has a consensus target price of $86.92, suggesting a potential upside of 7.51%. Given Newmont’s stronger consensus rating and higher possible upside, research analysts plainly believe Newmont is more favorable than Jaguar Mining.

Institutional & Insider Ownership

68.8% of Newmont shares are owned by institutional investors. 0.1% of Newmont shares are owned by insiders. Comparatively, 0.6% of Jaguar Mining shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. Newmont pays out 15.5% of its earnings in the form of a dividend. Jaguar Mining pays out -9.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Newmont has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Summary

Newmont beats Jaguar Mining on 14 of the 17 factors compared between the two stocks.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.