Reviewing McEwen Mining (NYSE:MUX) and Yamana Gold (AUY)

McEwen Mining (NYSE: MUX) and Yamana Gold (NYSE:AUY) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings for McEwen Mining and Yamana Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McEwen Mining 0 0 2 0 3.00
Yamana Gold 1 6 2 0 2.11

McEwen Mining presently has a consensus target price of $5.00, indicating a potential upside of 168.82%. Yamana Gold has a consensus target price of $3.54, indicating a potential upside of 47.40%. Given McEwen Mining’s stronger consensus rating and higher possible upside, research analysts plainly believe McEwen Mining is more favorable than Yamana Gold.

Risk and Volatility

McEwen Mining has a beta of -1.43, meaning that its stock price is 243% less volatile than the S&P 500. Comparatively, Yamana Gold has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares McEwen Mining and Yamana Gold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McEwen Mining $60.39 million 10.26 $21.05 million ($0.06) -31.00
Yamana Gold $1.79 billion 1.27 -$307.90 million ($0.37) -6.49

McEwen Mining has higher earnings, but lower revenue than Yamana Gold. McEwen Mining is trading at a lower price-to-earnings ratio than Yamana Gold, indicating that it is currently the more affordable of the two stocks.

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. McEwen Mining does not pay a dividend. Yamana Gold pays out -5.4% of its earnings in the form of a dividend.

Profitability

This table compares McEwen Mining and Yamana Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McEwen Mining -31.71% -4.25% -3.79%
Yamana Gold -20.19% 0.71% 0.37%

Insider and Institutional Ownership

27.7% of McEwen Mining shares are owned by institutional investors. Comparatively, 40.6% of Yamana Gold shares are owned by institutional investors. 26.1% of McEwen Mining shares are owned by company insiders. Comparatively, 2.7% of Yamana Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Yamana Gold beats McEwen Mining on 8 of the 14 factors compared between the two stocks.

About McEwen Mining

McEwen Mining Inc. is a mining and minerals production and exploration company. The Company is focused on precious and base metals in Argentina, Mexico and the United States. The Company’s segments include Mexico, Minera Santa Cruz S.A. (MSC), Nevada and Los Azules. The Mexico Operations segment includes properties, such as El Gallo 1 mine and the El Gallo 2 project. The MSC segment includes properties, such as the San Jose mine and other concessions located around the mine. The Company’s properties in Nevada segment include Gold Bar project and exploration properties. The Gold Bar project is a proposed mine project. The Los Azules segment includes various properties, such as Los Azules project, Chonchones project, Laganoso project, La Cerrada project and Other Argentina properties. The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile.

About Yamana Gold

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

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