Newmont Mining (NYSE:NEM) and Rare Element Resource (OTCMKTS:REEMF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Institutional & Insider Ownership
83.8% of Newmont Mining shares are owned by institutional investors. Comparatively, 0.0% of Rare Element Resource shares are owned by institutional investors. 0.4% of Newmont Mining shares are owned by insiders. Comparatively, 2.6% of Rare Element Resource shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Newmont Mining and Rare Element Resource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rare Element Resource||N/A||-44.49%||-23.19%|
Earnings & Valuation
This table compares Newmont Mining and Rare Element Resource’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Newmont Mining||$7.35 billion||2.53||-$98.00 million||$1.46||23.89|
|Rare Element Resource||N/A||N/A||-$850,000.00||N/A||N/A|
Rare Element Resource has lower revenue, but higher earnings than Newmont Mining.
Volatility & Risk
Newmont Mining has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Rare Element Resource has a beta of 3.82, indicating that its stock price is 282% more volatile than the S&P 500.
Newmont Mining pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. Rare Element Resource does not pay a dividend. Newmont Mining pays out 38.4% of its earnings in the form of a dividend. Newmont Mining has increased its dividend for 3 consecutive years.
This is a breakdown of recent ratings and target prices for Newmont Mining and Rare Element Resource, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rare Element Resource||0||0||0||0||N/A|
Newmont Mining currently has a consensus price target of $41.07, indicating a potential upside of 17.75%. Given Newmont Mining’s higher probable upside, analysts clearly believe Newmont Mining is more favorable than Rare Element Resource.
Newmont Mining beats Rare Element Resource on 8 of the 13 factors compared between the two stocks.
About Newmont Mining
Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver. Its operations and/or assets are located in the United States, Australia, Peru, Ghana, and Suriname. As of February 22, 2018, the company had proven and probable gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles. Newmont Mining Corporation was founded in 1916 and is headquartered in Greenwood Village, Colorado.
About Rare Element Resource
Rare Element Resources Ltd. explores for mineral properties in the United States. The company primarily explores for gold and rare earth element (REE) deposits. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in central Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.
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