Newmont vs Barrick Gold

Newmont Mining Corporation and Barrick Gold Corporation are two of the largest gold mining companies in the world, both with extensive operations and a long history of successful mining projects. Investors often compare their stocks, as they are both major players in the gold industry and can provide a significant return on investment. However, there are differences in their strategies, financial performance, and market positioning that can impact their stock performance. Understanding these factors is crucial for investors looking to make informed decisions on investing in Newmont vs Barrick Gold stocks.

Newmont or Barrick Gold?

When comparing Newmont and Barrick Gold, 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 Newmont and Barrick Gold.

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. Newmont has a dividend yield of 2.51%, while Barrick Gold has a dividend yield of 1.85%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Newmont reports a 5-year dividend growth of 23.36% year and a payout ratio of -68.87%. On the other hand, Barrick Gold reports a 5-year dividend growth of 14.50% year and a payout ratio of 46.48%.

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 Newmont P/E ratio at -32.60 and Barrick Gold's P/E ratio at 23.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Newmont P/B ratio is 2.19 while Barrick Gold's P/B ratio is 1.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Newmont has seen a 5-year revenue growth of 0.03%, while Barrick Gold's is 0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Newmont's ROE at -7.40% and Barrick Gold's ROE at 6.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $54.68 for Newmont and $19.91 for Barrick Gold. Over the past year, Newmont's prices ranged from $29.42 to $56.30, with a yearly change of 91.37%. Barrick Gold's prices fluctuated between $13.76 and $21.21, with a yearly change of 54.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.