Head to Head Survey: Kinross Gold (NYSE:KGC) vs. Jaguar Mining (OTCMKTS:JAGGF)

Kinross Gold (NYSE:KGC) 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 profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Institutional and Insider 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kinross Gold and Jaguar Mining, as reported 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 currently has a consensus price target of $39.56, suggesting a potential upside of 42.33%. Given Kinross Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Kinross Gold is more favorable than Jaguar Mining.

Risk and Volatility

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$7.05 billion	4.72	$2.39 billion	$1.96	14.18
Jaguar Mining	$158.63 million	2.64	-$1.29 million	($0.19)	-25.84

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 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%

Dividends

Kinross Gold pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. Kinross Gold pays out 8.2% of its earnings in the form of a dividend. Jaguar Mining pays out -15.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Jaguar Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kinross Gold beats Jaguar Mining on 14 of the 17 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.