Contrasting Barrick Gold (NYSE:GOLD) & Fresnillo (OTCMKTS:FNLPF)

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

Volatility & Risk

Fresnillo has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Barrick Gold has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

62.8% of Barrick Gold shares are owned by institutional investors. 0.6% of Barrick Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Fresnillo and Barrick Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresnillo	N/A	N/A	N/A
Barrick Gold	13.19%	5.82%	4.07%

Dividends

Fresnillo pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. Barrick Gold pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Barrick Gold pays out 43.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Fresnillo and Barrick Gold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresnillo	$2.71 billion	2.17	$233.91 million	N/A	N/A
Barrick Gold	$12.34 billion	2.21	$1.27 billion	$0.93	16.86

Barrick Gold has higher revenue and earnings than Fresnillo.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Fresnillo and Barrick Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresnillo	0	1	0	1	3.00
Barrick Gold	0	5	7	0	2.58

Barrick Gold has a consensus price target of $24.82, suggesting a potential upside of 58.28%. Given Barrick Gold’s higher probable upside, analysts clearly believe Barrick Gold is more favorable than Fresnillo.

Summary

Barrick Gold beats Fresnillo on 11 of the 15 factors compared between the two stocks.

About Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.

About Barrick Gold

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
 
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex.  Barrick owns and operates six Tier One gold mines:  Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
 
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.