Maverix Metals (NYSE:MMX) and Centerra Gold (NYSE:CGAU) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Maverix Metals pays an annual dividend of $0.05 per share and has a dividend yield of 1.1%. Centerra Gold pays an annual dividend of $0.22 per share and has a dividend yield of 3.2%. Maverix Metals pays out 55.6% of its earnings in the form of a dividend. Centerra Gold pays out 14.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Maverix Metals has increased its dividend for 1 consecutive years. Centerra Gold is clearly the better dividend stock, given its higher yield and lower payout ratio.
10.3% of Maverix Metals shares are owned by institutional investors. Comparatively, 35.3% of Centerra Gold shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Maverix Metals and Centerra Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for Maverix Metals and Centerra Gold, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Maverix Metals presently has a consensus target price of $8.50, suggesting a potential upside of 88.05%. Centerra Gold has a consensus target price of $11.07, suggesting a potential upside of 59.99%. Given Maverix Metals’ stronger consensus rating and higher probable upside, research analysts clearly believe Maverix Metals is more favorable than Centerra Gold.
Earnings & Valuation
This table compares Maverix Metals and Centerra Gold’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Maverix Metals||$38.58 million||17.09||$23.72 million||$0.09||50.22|
|Centerra Gold||$1.69 billion||1.22||$408.54 million||$1.55||4.46|
Centerra Gold has higher revenue and earnings than Maverix Metals. Centerra Gold is trading at a lower price-to-earnings ratio than Maverix Metals, indicating that it is currently the more affordable of the two stocks.
Centerra Gold beats Maverix Metals on 8 of the 15 factors compared between the two stocks.
About Maverix Metals
Maverix Metals, Inc. engages in the evaluation and acquisition of mining royalties and precious metals streams. Its assets include La Colorada, San Jose, Mt. Carlton, Vivien, Beta Hunt, Silvertrip, Florida Canyon, Moose River, Shalipayco and Romero. The company was founded by Geoffrey A. Burns and Daniel O’Flaherty on September 5, 2008 and is headquartered in Vancouver, Canada.
About Centerra Gold
Centerra Gold, Inc. engages in the operation, development, exploration and acquisition of gold and copper properties. It operates through the following segments: Kumtor, Mount Milligan, and Öksüt. The company was founded on November 7, 2002 and is headquartered in Toronto, Canada.
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