Kinross Gold (NYSE:KGC) and NextSource Materials (OTCMKTS:NSRCF) Head to Head Review

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

Institutional & Insider Ownership

56.6% of Kinross Gold shares are held by institutional investors. Comparatively, 0.4% of NextSource Materials shares are held by institutional investors. 1.0% of Kinross Gold shares are held by company insiders. Comparatively, 4.6% of NextSource Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Kinross Gold has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, NextSource Materials has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kinross Gold and NextSource Materials’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kinross Gold $3.73 billion 1.59 $221.20 million ($0.36) -12.64
NextSource Materials N/A N/A -$41.96 million ($0.57) -3.18

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

Profitability

This table compares Kinross Gold and NextSource Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinross Gold -12.88% 6.27% 3.95%
NextSource Materials N/A N/A -60.41%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kinross Gold and NextSource Materials, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinross Gold 0 4 8 0 2.67
NextSource Materials 0 0 1 0 3.00

Kinross Gold currently has a consensus price target of $8.23, indicating a potential upside of 80.86%. NextSource Materials has a consensus price target of $6.00, indicating a potential upside of 231.31%. Given NextSource Materials’ stronger consensus rating and higher probable upside, analysts clearly believe NextSource Materials is more favorable than Kinross Gold.

Summary

Kinross Gold beats NextSource Materials on 7 of the 13 factors compared between the two stocks.

Kinross Gold Company Profile (Get Rating)

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. 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.

NextSource Materials Company Profile (Get Rating)

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its principal mineral property is the Molo graphite mine that includes 2,119 permits covering an area of 827.7 square kilometers located in Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. and changed its name to NextSource Materials Inc. in April 2017. NextSource Materials Inc. was founded in 2004 and is headquartered in Toronto, Canada.

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