Barrick Gold vs Newmont Which Is More Promising?

Barrick Gold and Newmont are two of the largest and most well-known mining companies in the world. Both companies have a strong presence in the gold and precious metals markets, with operations spanning across multiple countries. Investors often compare Barrick Gold and Newmont stocks due to their similar focus on mining resources and commodities. Understanding the differences in their financial performance, growth strategies, and market positioning can help investors make informed decisions when considering investing in either company.

Barrick Gold or Newmont?

When comparing Barrick Gold and Newmont, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Barrick Gold and Newmont.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Barrick Gold has a dividend yield of 2.23%, while Newmont has a dividend yield of 2.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Barrick Gold reports a 5-year dividend growth of 14.50% year and a payout ratio of 43.24%. On the other hand, Newmont reports a 5-year dividend growth of 23.36% year and a payout ratio of -109.88%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Barrick Gold P/E ratio at 18.07 and Newmont's P/E ratio at -38.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Barrick Gold P/B ratio is 1.23 while Newmont's P/B ratio is 1.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Barrick Gold has seen a 5-year revenue growth of 0.05%, while Newmont's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Barrick Gold's ROE at 6.92% and Newmont's ROE at -4.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.73 for Barrick Gold and $40.19 for Newmont. Over the past year, Barrick Gold's prices ranged from $13.76 to $21.35, with a yearly change of 55.16%. Newmont's prices fluctuated between $29.42 and $58.72, with a yearly change of 99.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.