Financial Comparison: Newmont (NYSE:NEM) vs. Osisko Development (NYSE:ODV)

Osisko Development (NYSE:ODV) and Newmont (NYSE:NEM) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Institutional & Insider Ownership

15.2% of Osisko Development shares are owned by institutional investors. Comparatively, 68.9% of Newmont shares are owned by institutional investors. 0.9% of Osisko Development shares are owned by company insiders. Comparatively, 0.1% of Newmont shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Osisko Development has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Profitability

This table compares Osisko Development and Newmont’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Osisko Development	-1,817.64%	-11.51%	-8.41%
Newmont	-7.03%	9.80%	5.18%

Valuation and Earnings

This table compares Osisko Development and Newmont”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osisko Development	$23.43 million	8.72	-$134.73 million	($1.81)	-0.83
Newmont	$11.81 billion	4.51	-$2.49 billion	($1.52)	-30.81

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

Analyst Recommendations

This is a breakdown of current recommendations for Osisko Development and Newmont, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osisko Development	0	0	0	0	0.00
Newmont	1	7	8	2	2.61

Newmont has a consensus price target of $53.37, suggesting a potential upside of 13.97%. Given Newmont’s stronger consensus rating and higher probable upside, analysts plainly believe Newmont is more favorable than Osisko Development.

Summary

Newmont beats Osisko Development on 10 of the 15 factors compared between the two stocks.

About Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.

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.