Critical Contrast: Kinross Gold (NYSE:KGC) vs. Jaguar Mining (OTCMKTS:JAGGF)

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

Volatility & Risk

Jaguar Mining has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Jaguar Mining and Kinross Gold, as provided by MarketBeat.

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

Kinross Gold has a consensus price target of $39.56, indicating a potential upside of 44.21%. Given Kinross Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Kinross Gold is more favorable than Jaguar Mining.

Insider & Institutional Ownership

63.7% of Kinross Gold shares are owned by institutional investors. 0.6% of Jaguar Mining shares are owned by insiders. Comparatively, 1.0% of Kinross 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$158.63 million	2.57	-$1.29 million	($0.19)	-25.18
Kinross Gold	$7.05 billion	4.66	$2.39 billion	$1.96	14.00

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.

Profitability

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

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

Summary

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

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.

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.