Outokumpu (OTCMKTS:OUTKY – Get Free Report) and Kinross Gold (NYSE:KGC – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Outokumpu and Kinross Gold”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outokumpu | $6.19 billion | 0.50 | -$155.00 million | ($0.10) | -32.65 |
| Kinross Gold | $7.05 billion | 5.08 | $2.39 billion | $2.64 | 11.46 |
Dividends
Outokumpu pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Kinross Gold pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Outokumpu pays out -20.0% of its earnings in the form of a dividend. Kinross Gold pays out 6.1% 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. Outokumpu is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Outokumpu and Kinross Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outokumpu | -1.48% | -2.38% | -1.41% |
| Kinross Gold | 37.52% | 34.00% | 23.84% |
Insider and Institutional Ownership
63.7% of Kinross Gold shares are owned by institutional investors. 1.0% of Kinross Gold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Outokumpu has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Outokumpu and Kinross Gold, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outokumpu | 0 | 4 | 2 | 0 | 2.33 |
| Kinross Gold | 1 | 2 | 9 | 1 | 2.77 |
Kinross Gold has a consensus price target of $38.43, indicating a potential upside of 27.04%. Given Kinross Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Kinross Gold is more favorable than Outokumpu.
Summary
Kinross Gold beats Outokumpu on 15 of the 17 factors compared between the two stocks.
About Outokumpu
Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. The company operates through three segments: Europe, Americas, and Ferrochrome. It offers cold rolled coils, strips, and sheets; hot rolled coils, strips, and plates; quarto plates; precision strips; and specialized components, such as welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, hardened and customized press plates, suction roll shells, and blancs and disks. The company also provides stainless steel powder which includes Supra 316L, Dura 17-4PH, Ultra 904L, Therma 253MA, Dura 4116, and Ni-free austenitic stainless steel powder; and nickel-based alloys. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy; marine; and heavy industries. The company was founded in 1910 and is headquartered in Helsinki, Finland.
About Kinross Gold
Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.
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