Goldcorp (NYSE: GG) and Richmont Mines (NYSE:RIC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
This table compares Goldcorp and Richmont Mines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
53.8% of Goldcorp shares are held by institutional investors. Comparatively, 53.8% of Richmont Mines shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Goldcorp and Richmont Mines, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Goldcorp presently has a consensus target price of $16.92, suggesting a potential upside of 27.86%. Given Goldcorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Goldcorp is more favorable than Richmont Mines.
Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Richmont Mines does not pay a dividend. Goldcorp pays out 13.1% of its earnings in the form of a dividend. Goldcorp has raised its dividend for 4 consecutive years.
Earnings and Valuation
This table compares Goldcorp and Richmont Mines’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Goldcorp||$3.51 billion||3.27||$162.00 million||$0.61||21.69|
|Richmont Mines||$127.39 million||4.68||$9.41 million||$0.22||42.50|
Goldcorp has higher revenue and earnings than Richmont Mines. Goldcorp is trading at a lower price-to-earnings ratio than Richmont Mines, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Goldcorp has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500. Comparatively, Richmont Mines has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.
Goldcorp beats Richmont Mines on 9 of the 15 factors compared between the two stocks.
Goldcorp Inc. is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company is engaged in the sale of gold, silver, lead, zinc and copper. The Company’s segments include Red Lake Gold Mines Ontario Partnership (Red Lake), Goldcorp Canada Ltd./Goldcorp Inc. (Porcupine), Musselwhite, Les Mines Opinaca Ltee (Eleonore), Minera Penasquito S.A. de C.V. and Camino Rojo S.A. de C.V. (Penasquito), Desarrollos Mineros San Luis S.A. de C.V. (Los Filos), Montana Exploradora de Guatemala S.A. (Marlin), Oroplata S.A. (Cerro Negro), Corredor SpA (Project Corridor), Minera Alumbrera Limited (Alumbrera), El Morro and Pueblo Viejo Dominicana Corporation (Pueblo Viejo). The Company’s principal product is gold dore with the refined gold bullion sold primarily in the London spot market.
About Richmont Mines
Richmont Mines Inc. is a mining company. The Company is engaged in mining, exploration and development of mining properties, principally gold. The Company operates gold mines at various sites in Quebec and Ontario. The Company’s segments include Quebec and Ontario. The Company is engaged in producing gold from the Island Gold Mine in Ontario and the Beaufor Mine in Quebec. The Island Gold mine is located 83 kilometers northeast of Wawa, Ontario. It is part of the Island Gold Project, which is divided into nine parts (properties) comprising 219 patented, leased and staked claims covering 7,772 hectares, mainly within the townships of Finan and Jacobson. The Island Gold Project is located in the Michipicoten Greenstone Belt. The Beaufor Mine is located 25 kilometers northeast of Val-d’Or, Quebec. The Camflo mill has rated capacity of 1,200 short tons per day. It is located at Malartic, Quebec. The 7.58 square kilometers Wasamac property is located in the west of Rouyn-Noranda, Quebec.
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