Agnico Eagle Mines (NYSE:AEM) vs. Skeena Resources (NYSE:SKE) Financial Analysis

Agnico Eagle Mines (NYSE:AEM) and Skeena Resources (NYSE:SKE) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Agnico Eagle Mines and Skeena Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agnico Eagle Mines	0	1	7	0	2.88
Skeena Resources	0	0	0	0	0.00

Agnico Eagle Mines currently has a consensus target price of $95.78, indicating a potential downside of 3.11%. Given Agnico Eagle Mines’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Agnico Eagle Mines is more favorable than Skeena Resources.

Earnings & Valuation

This table compares Agnico Eagle Mines and Skeena Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agnico Eagle Mines	$8.29 billion	6.00	$1.90 billion	$3.78	26.15
Skeena Resources	N/A	N/A	-$80.73 million	($1.37)	-7.06

Agnico Eagle Mines has higher revenue and earnings than Skeena Resources. Skeena Resources is trading at a lower price-to-earnings ratio than Agnico Eagle Mines, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Agnico Eagle Mines has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Skeena Resources has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

68.3% of Agnico Eagle Mines shares are owned by institutional investors. Comparatively, 45.2% of Skeena Resources shares are owned by institutional investors. 0.5% of Agnico Eagle Mines shares are owned by insiders. Comparatively, 2.0% of Skeena Resources shares are owned by 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.

Profitability

This table compares Agnico Eagle Mines and Skeena Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agnico Eagle Mines	22.88%	10.45%	7.18%
Skeena Resources	N/A	-115.76%	-67.22%

Summary

Agnico Eagle Mines beats Skeena Resources on 11 of the 13 factors compared between the two stocks.

About Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.

About Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.