Newmont (NYSE:NEM) and Osisko Mining (OTCMKTS:OBNNF) Critical Review

Osisko Mining (OTCMKTS:OBNNF) and Newmont (NYSE:NEM) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Osisko Mining and Newmont’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osisko Mining	N/A	N/A	$165.48 million	$0.42	4.94
Newmont	$11.81 billion	4.09	-$2.49 billion	($2.67)	-15.68

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Osisko Mining and Newmont, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osisko Mining	0	0	1	0	3.00
Newmont	0	6	9	1	2.69

Osisko Mining presently has a consensus target price of $3.50, indicating a potential upside of 68.67%. Newmont has a consensus target price of $49.13, indicating a potential upside of 17.35%. Given Osisko Mining’s stronger consensus rating and higher probable upside, equities analysts clearly believe Osisko Mining is more favorable than Newmont.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Osisko Mining	N/A	-1.01%	-0.82%
Newmont	-20.19%	6.88%	3.57%

Summary

Newmont beats Osisko Mining on 7 of the 13 factors compared between the two stocks.

About Osisko Mining

Osisko Mining Inc., a mineral exploration company, engages in the acquisition, exploration, and development of precious mineral deposits in Canada. The company primarily explores for gold deposits. It holds interest in the Windfall Lake Project, Quévillon Osborne Project, and Urban-Barry Project located in Québec, Canada; and Phoenix Properties located in Québec, Canada. The company was formerly known as Oban Mining Corporation and changed its name to Osisko Mining Inc. in June 2016. Osisko Mining Inc. is headquartered in Toronto, 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.