Financial Analysis: Agnico Eagle Mines (NYSE:AEM) vs. Jaguar Mining (OTCMKTS:JAGGF)

Agnico Eagle Mines (NYSE:AEM) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Valuation and Earnings

This table compares Agnico Eagle Mines and Jaguar Mining”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agnico Eagle Mines	$9.66 billion	6.93	$1.90 billion	$5.88	22.67
Jaguar Mining	$158.63 million	1.54	-$1.29 million	($0.07)	-43.91

Agnico Eagle Mines has higher revenue and earnings than Jaguar Mining. Jaguar Mining is trading at a lower price-to-earnings ratio than Agnico Eagle Mines, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Agnico Eagle Mines has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Agnico Eagle Mines and Jaguar Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agnico Eagle Mines	0	2	7	5	3.21
Jaguar Mining	0	0	0	0	0.00

Agnico Eagle Mines presently has a consensus target price of $136.90, indicating a potential upside of 2.72%. Given Agnico Eagle Mines’ stronger consensus rating and higher possible upside, equities analysts plainly believe Agnico Eagle Mines is more favorable than Jaguar Mining.

Profitability

This table compares Agnico Eagle Mines and Jaguar Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agnico Eagle Mines	30.63%	13.79%	9.66%
Jaguar Mining	-17.87%	1.39%	1.01%

Institutional & Insider Ownership

68.3% of Agnico Eagle Mines shares are owned by institutional investors. 0.5% of Agnico Eagle Mines shares are owned by company insiders. Comparatively, 0.6% of Jaguar Mining shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Agnico Eagle Mines beats Jaguar Mining on 13 of the 15 factors compared between the two stocks.

About Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.