Analyzing Newmont (NYSE:NEM) & Patten Energy Solutions Group (OTCMKTS:PTTN)

Newmont (NYSE:NEM) and Patten Energy Solutions Group (OTCMKTS:PTTN) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Newmont and Patten Energy Solutions Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmont	1	7	8	2	2.61
Patten Energy Solutions Group	0	0	0	0	0.00

Newmont currently has a consensus price target of $53.44, indicating a potential upside of 27.11%. Given Newmont’s stronger consensus rating and higher possible upside, equities analysts plainly believe Newmont is more favorable than Patten Energy Solutions Group.

Valuation and Earnings

This table compares Newmont and Patten Energy Solutions Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmont	$11.81 billion	4.05	-$2.49 billion	($1.52)	-27.66
Patten Energy Solutions Group	N/A	N/A	N/A	N/A	N/A

Patten Energy Solutions Group has lower revenue, but higher earnings than Newmont.

Profitability

This table compares Newmont and Patten Energy Solutions Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newmont	-7.03%	9.80%	5.18%
Patten Energy Solutions Group	N/A	N/A	N/A

Institutional & Insider Ownership

68.9% of Newmont shares are owned by institutional investors. 0.1% of Newmont shares are owned by insiders. Comparatively, 2.5% of Patten Energy Solutions Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Newmont beats Patten Energy Solutions Group on 8 of the 10 factors compared between the two stocks.

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.

About Patten Energy Solutions Group

Patten Energy Solutions Group, Inc., an exploration stage company, engages in the acquisition, exploration, development, mining, and production of energy and mineral properties. The company primarily explores for lithium carbonate and other minerals. It holds interests in a portfolio of properties covering approximately 31,020 acres located in the United States and Australia. Patten Energy Solutions Group, Inc. was founded in 2004 and is based in Dolton, Illinois.