Kinross Gold (NYSE:KGC) and Outokumpu (OTCMKTS:OUTKY) Head-To-Head Analysis

Outokumpu (OTCMKTS:OUTKY) and Kinross Gold (NYSE:KGC) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

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%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Outokumpu and Kinross Gold, as provided by MarketBeat.com.

	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 target price of $38.43, indicating a potential upside of 27.04%. Given Kinross Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Kinross Gold is more favorable than Outokumpu.

Valuation & Earnings

This table compares Outokumpu and Kinross Gold”s revenue, earnings per share (EPS) 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

Kinross Gold has higher revenue and earnings than Outokumpu. Outokumpu is trading at a lower price-to-earnings ratio than Kinross Gold, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

63.7% of Kinross 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, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Outokumpu has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

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.

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.