Perenti (OTCMKTS:AUSDF – Get Free Report) and Iamgold (NYSE:IAG – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Valuation and Earnings
This table compares Perenti and Iamgold”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perenti | N/A | N/A | N/A | ($0.14) | -13.20 |
| Iamgold | $3.68 billion | 2.86 | $664.40 million | $1.98 | 9.24 |
Insider & Institutional Ownership
22.4% of Perenti shares are owned by institutional investors. Comparatively, 47.1% of Iamgold shares are owned by institutional investors. 0.2% of Iamgold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Perenti and Iamgold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perenti | N/A | N/A | N/A |
| Iamgold | 31.40% | 28.97% | 20.87% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Perenti and Iamgold, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perenti | 0 | 0 | 0 | 0 | 0.00 |
| Iamgold | 0 | 3 | 5 | 1 | 2.78 |
Iamgold has a consensus target price of $19.20, indicating a potential upside of 4.90%. Given Iamgold’s stronger consensus rating and higher probable upside, analysts plainly believe Iamgold is more favorable than Perenti.
Dividends
Perenti pays an annual dividend of $0.08 per share and has a dividend yield of 4.4%. Iamgold pays an annual dividend of $0.25 per share and has a dividend yield of 1.4%. Perenti pays out -58.7% of its earnings in the form of a dividend. Iamgold pays out 12.6% 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. Perenti is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Iamgold beats Perenti on 12 of the 14 factors compared between the two stocks.
About Perenti
Perenti Limited operates as a mining services company worldwide. It operates through Contract Mining, Drilling Services, and Mining Services and Idoba segments. The company offers underground and surface contract mining, drill and blast, in-pit grade control, exploration drilling, earthmoving, and machinery rebuilds services; and drilling services including specialized deep hole multi-intersectional directional diamond core drilling, underground diamond core drilling, drilling and blasting, and in-pit grade control services. It also provides mining support services, such as equipment hire, equipment parts and sales, equipment supply, logistics services, and technology driven products and services. The company was formerly known as Perenti Global Limited and changed its name to Perenti Limited in October 2022. Perenti Limited was incorporated in 1986 and is headquartered in Northbridge, Australia.
About Iamgold
IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.
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