Critical Review: Jaguar Mining (JAGGD) & Its Peers

Jaguar Mining (OTCMKTS:JAGGD) is one of 110 publicly-traded companies in the “Metal Mining” industry, but how does it compare to its competitors? We will compare Jaguar Mining to similar companies based on the strength of its profitability, dividends, risk, earnings, valuation, institutional ownership and analyst recommendations.

Profitability

This table compares Jaguar Mining and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	28.17%	26.75%	17.80%
Jaguar Mining Competitors	-84.86%	-3.70%	-3.47%

Risk and Volatility

Jaguar Mining has a beta of 2.75, meaning that its stock price is 175% more volatile than the S&P 500. Comparatively, Jaguar Mining’s competitors have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Valuation and Earnings

This table compares Jaguar Mining and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Jaguar Mining	$97.23 million	-$150,000.00	6.40
Jaguar Mining Competitors	$6.79 billion	$973.46 million	-4.05

Jaguar Mining’s competitors have higher revenue and earnings than Jaguar Mining. Jaguar Mining is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Jaguar Mining and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	N/A
Jaguar Mining Competitors	1190	2566	3119	121	2.31

As a group, “Metal Mining” companies have a potential upside of 32.34%. Given Jaguar Mining’s competitors higher possible upside, analysts clearly believe Jaguar Mining has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

28.2% of shares of all “Metal Mining” companies are owned by institutional investors. 13.0% of shares of all “Metal Mining” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Jaguar Mining pays an annual dividend of $0.25 per share and has a dividend yield of 7.7%. Jaguar Mining pays out 49.0% of its earnings in the form of a dividend. As a group, “Metal Mining” companies pay a dividend yield of 3.3% and pay out 80.7% of their earnings in the form of a dividend. Jaguar Mining is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Jaguar Mining beats its competitors on 7 of the 12 factors compared.

Jaguar Mining Company Profile

Jaguar Mining, Inc. engages in the acquisition, exploration, development and operation of gold producing properties in Brazil. Its mining operations include Turmalina, Paciência and Caeté. The firm is also developing the Grurupi Project and exploring the Iron Quadrangle and Pedra Branca Project. The company was founded by Daniel R. Titcomb in 1984 and is headquartered Toronto, Canada.