Contrasting IAMGOLD (NYSE:IAG) and Taseko Mines (NYSE:TGB)

IAMGOLD (NYSE:IAGGet Rating) and Taseko Mines (NYSE:TGBGet Rating) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Profitability

This table compares IAMGOLD and Taseko Mines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IAMGOLD -20.65% 1.90% 1.12%
Taseko Mines 11.37% 16.28% 4.90%

Volatility and Risk

IAMGOLD has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Taseko Mines has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.

Earnings and Valuation

This table compares IAMGOLD and Taseko Mines’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IAMGOLD $1.15 billion 0.83 -$254.40 million ($0.53) -3.75
Taseko Mines $345.68 million 1.05 $29.10 million $0.15 8.47

Taseko Mines has lower revenue, but higher earnings than IAMGOLD. IAMGOLD is trading at a lower price-to-earnings ratio than Taseko Mines, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for IAMGOLD and Taseko Mines, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IAMGOLD 6 3 0 0 1.33
Taseko Mines 0 0 0 0 N/A

IAMGOLD currently has a consensus target price of $3.28, suggesting a potential upside of 64.89%. Given IAMGOLD’s higher possible upside, analysts clearly believe IAMGOLD is more favorable than Taseko Mines.

Institutional & Insider Ownership

49.2% of IAMGOLD shares are held by institutional investors. Comparatively, 21.1% of Taseko Mines shares are held by institutional investors. 2.3% of Taseko Mines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Taseko Mines beats IAMGOLD on 9 of the 12 factors compared between the two stocks.

About IAMGOLD (Get Rating)

IAMGOLD Corporation, through its subsidiaries, explores, develops, and operates gold mining properties in North America, South America, and West Africa. The company owns interests in the Rosebel mine located in Suriname, South America; the Essakane mine situated in Burkina Faso and Boto gold project located in Senegal, West Africa; and Westwood mine, covers an area of 1,925 hectare and located in Quebec and the Côté gold project, which covers an area of 586 square kilometer located in Ontario, Canada. Its exploration and development projects include the Pitangui project in Brazil; the Karita project located in Guinea; the Diakha-Siribaya project situated in Mali; and the Nelligan and Monster Lake projects located in Quebec, Canada. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About Taseko Mines (Get Rating)

Taseko Mines Limited, a mining company, acquires, develops, and operates mineral properties. The company explores for copper, molybdenum, gold, niobium, and silver deposits. It holds 75% interest in the Gibraltar mine located in British Columbia. It also holds 100% interest in Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project located in British Columbia; and the Florence copper project located in Arizona. The company was incorporated in 1966 and is headquartered in Vancouver, Canada.

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