Critical Review: IAMGOLD (NYSE:IAG) & Vista Gold (NYSE:VGZ)

IAMGOLD (NYSE:IAGGet Rating) and Vista Gold (NYSE:VGZGet Rating) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares IAMGOLD and Vista Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IAMGOLD -22.09% 1.07% 0.64%
Vista Gold N/A -96.41% -84.76%

Analyst Ratings

This is a summary of recent ratings and recommmendations for IAMGOLD and Vista Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IAMGOLD 5 3 1 0 1.56
Vista Gold 0 0 0 0 N/A

IAMGOLD currently has a consensus target price of $3.28, suggesting a potential upside of 53.33%. Given IAMGOLD’s higher probable upside, research analysts plainly believe IAMGOLD is more favorable than Vista Gold.

Risk & Volatility

IAMGOLD has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Vista Gold has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Valuation and Earnings

This table compares IAMGOLD and Vista Gold’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IAMGOLD $1.15 billion 0.89 -$254.40 million ($0.54) -3.96
Vista Gold N/A N/A -$15.24 million ($0.11) -8.18

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

Institutional and Insider Ownership

49.2% of IAMGOLD shares are owned by institutional investors. Comparatively, 29.4% of Vista Gold shares are owned by institutional investors. 5.8% of Vista Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

IAMGOLD beats Vista Gold on 7 of the 12 factors compared between the two stocks.

About IAMGOLD (Get Rating)

IAMGOLD Corporation, through its subsidiaries, explores, develops, and operates gold mining properties in North America, South America, and West Africa. The company owns interests in the Rosebel mine located in Suriname, South America; the Essakane mine situated in Burkina Faso and Boto gold project located in Senegal, West Africa; and Westwood mine, covers an area of 1,925 hectare and located in Quebec and the Côté gold project, which covers an area of 586 square kilometer located in Ontario, Canada. Its exploration and development projects include the Pitangui project in Brazil; the Karita project located in Guinea; the Diakha-Siribaya project situated in Mali; and the Nelligan and Monster Lake projects located in Quebec, Canada. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About Vista Gold (Get Rating)

Vista Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects primarily in Australia. The company's flagship asset is the Mt Todd gold project located in Northern Territory. Vista Gold Corp. was founded in 1983 and is headquartered in Littleton, Colorado.

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