Critical Survey: Kinross Gold (NYSE:KGC) and Solgold (OTCMKTS:SLGGF)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solgold	N/A	N/A	-$36.25 million	($0.01)	-35.00
Kinross Gold	$5.15 billion	6.96	$948.80 million	$1.43	20.82

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Solgold and Kinross Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solgold	0	0	0	0	0.00
Kinross Gold	0	3	9	4	3.06

Kinross Gold has a consensus price target of $29.81, indicating a potential upside of 0.16%. Given Kinross Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Kinross Gold is more favorable than Solgold.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solgold	N/A	-26.92%	-12.63%
Kinross Gold	27.30%	22.25%	14.75%

Volatility and Risk

Solgold has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Summary

Kinross Gold beats Solgold on 13 of the 14 factors compared between the two stocks.

About Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.

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.