Kinross Gold (NYSE:KGC) and Barrick Gold (NYSE:GOLD) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.
Profitability
This table compares Kinross Gold and Barrick Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kinross Gold | 5.15% | 6.02% | 3.39% |
| Barrick Gold | 15.85% | 3.60% | 2.04% |
This is a summary of current ratings and price targets for Kinross Gold and Barrick Gold, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kinross Gold | 1 | 5 | 5 | 0 | 2.36 |
| Barrick Gold | 0 | 3 | 4 | 0 | 2.57 |
Kinross Gold currently has a consensus target price of $4.80, indicating a potential upside of 5.96%. Barrick Gold has a consensus target price of $15.95, indicating a potential downside of 10.64%. Given Kinross Gold’s higher probable upside, equities analysts plainly believe Kinross Gold is more favorable than Barrick Gold.
Valuation and Earnings
This table compares Kinross Gold and Barrick Gold’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kinross Gold | $3.21 billion | 1.77 | -$23.60 million | $0.10 | 45.30 |
| Barrick Gold | $7.24 billion | 4.38 | -$1.55 billion | $0.35 | 51.00 |
Kinross Gold has higher earnings, but lower revenue than Barrick Gold. Kinross Gold is trading at a lower price-to-earnings ratio than Barrick Gold, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Kinross Gold has a beta of -0.15, indicating that its share price is 115% less volatile than the S&P 500. Comparatively, Barrick Gold has a beta of -0.37, indicating that its share price is 137% less volatile than the S&P 500.
Institutional & Insider Ownership
52.2% of Kinross Gold shares are held by institutional investors. Comparatively, 62.7% of Barrick Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Kinross Gold Company Profile
Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. It is also involved in the reclamation of gold mining properties; and production and sale of silver. As of December 31, 2018, its proven and probable mineral reserves included approximately 25.5 million ounces of gold, as well as 53.9 million ounces of silver. The company was founded in 1993 and is headquartered in Toronto, Canada.
Barrick Gold Company Profile
Barrick Gold Corporation engages in the exploration and development of mineral properties. It primarily explores for gold and copper deposits. The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zaldavar, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia. It also owns gold mines and exploration properties in Africa; and gold projects located in South America and North America. Barrick Gold Corporation has strategic cooperation agreement with Shandong Gold Group Co. Ltd. The company was founded in 1983 and is headquartered in Toronto, Canada.
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