Analyzing Newmont (NYSE:NEM) and Hycroft Mining (NASDAQ:HYMC)

Newmont (NYSE:NEM) and Hycroft Mining (NASDAQ:HYMC) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

68.9% of Newmont shares are held by institutional investors. Comparatively, 7.4% of Hycroft Mining shares are held by institutional investors. 0.1% of Newmont shares are held by company insiders. Comparatively, 1.2% of Hycroft Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Newmont and Hycroft Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newmont	-7.03%	9.80%	5.18%
Hycroft Mining	N/A	-1,270.82%	-36.23%

Volatility and Risk

Newmont has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Hycroft Mining has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Newmont and Hycroft Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmont	1	7	8	2	2.61
Hycroft Mining	0	0	0	0	0.00

Newmont currently has a consensus price target of $53.44, suggesting a potential upside of 27.11%. Given Newmont’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Newmont is more favorable than Hycroft Mining.

Valuation & Earnings

This table compares Newmont and Hycroft Mining”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmont	$11.81 billion	4.05	-$2.49 billion	($1.52)	-27.66
Hycroft Mining	$33.23 million	1.59	-$55.02 million	N/A	N/A

Hycroft Mining has lower revenue, but higher earnings than Newmont.

Summary

Newmont beats Hycroft Mining on 9 of the 13 factors compared between the two stocks.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.

About Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.