Reviewing NovaGold Resources (NYSE:NG) & Kinross Gold (NYSE:KGC)

NovaGold Resources (NYSE:NGGet Rating) and Kinross Gold (NYSE:KGCGet Rating) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares NovaGold Resources and Kinross Gold’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NovaGold Resources N/A N/A -$40.54 million ($0.13) -44.38
Kinross Gold $3.73 billion 1.71 $221.20 million $0.17 28.94

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

Institutional and Insider Ownership

52.5% of NovaGold Resources shares are owned by institutional investors. Comparatively, 56.6% of Kinross Gold shares are owned by institutional investors. 3.3% of NovaGold Resources shares are owned by company insiders. Comparatively, 1.0% of Kinross 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.

Volatility and Risk

NovaGold Resources has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NovaGold Resources and Kinross Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NovaGold Resources 0 0 0 0 N/A
Kinross Gold 0 4 8 0 2.67

Kinross Gold has a consensus target price of $8.23, indicating a potential upside of 67.26%. Given Kinross Gold’s higher probable upside, analysts plainly believe Kinross Gold is more favorable than NovaGold Resources.

Profitability

This table compares NovaGold Resources and Kinross Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NovaGold Resources N/A -51.33% -21.16%
Kinross Gold 5.93% 8.00% 5.14%

Summary

Kinross Gold beats NovaGold Resources on 10 of the 11 factors compared between the two stocks.

NovaGold Resources Company Profile (Get Rating)

NovaGold Resources Inc. explores for and develops gold mineral properties in the United States. Its principal asset is the Donlin Gold project consisting of 493 mining claims covering an area of approximately 29,008 hectares located in the Kuskokwim region of southwestern Alaska. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was incorporated in 1984 and is based in Vancouver, Canada.

Kinross Gold Company Profile (Get Rating)

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. 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.

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