Kinross Gold (NYSE:KGC) and Jaguar Mining (OTCMKTS:JAGGF) Critical Review

Kinross Gold (NYSE:KGC) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares Kinross Gold and Jaguar Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$7.05 billion	5.35	$2.39 billion	$1.96	16.08
Jaguar Mining	$135.17 million	3.12	-$1.29 million	($0.19)	-26.00

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

Volatility & Risk

Kinross Gold has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kinross Gold and Jaguar Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinross Gold	0	3	10	1	2.86
Jaguar Mining	0	0	0	0	0.00

Kinross Gold presently has a consensus price target of $38.81, suggesting a potential upside of 23.16%. Given Kinross Gold’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Kinross Gold is more favorable than Jaguar Mining.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinross Gold	33.90%	28.22%	19.11%
Jaguar Mining	-10.83%	3.72%	2.55%

Insider and Institutional Ownership

63.7% of Kinross Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by company insiders. Comparatively, 0.6% of Jaguar Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Kinross Gold beats Jaguar Mining on 14 of the 15 factors compared between the two stocks.

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.

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.