Analyzing Aris Mining (NYSE:ARMN) and Newmont (NYSE:NEM)

Aris Mining (NYSE:ARMN) and Newmont (NYSE:NEM) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Valuation and Earnings

This table compares Aris Mining and Newmont’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$447.67 million	1.34	$11.42 million	$0.02	203.00
Newmont	$11.81 billion	4.17	-$2.49 billion	($2.67)	-16.00

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

Analyst Recommendations

This is a breakdown of recent ratings for Aris Mining and Newmont, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	0	0	0	0	N/A
Newmont	0	6	7	0	2.54

Newmont has a consensus target price of $51.77, indicating a potential upside of 21.16%. Given Newmont’s higher probable upside, analysts plainly believe Newmont is more favorable than Aris Mining.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aris Mining	2.09%	8.73%	4.05%
Newmont	-20.19%	6.88%	3.57%

Institutional and Insider Ownership

35.8% of Aris Mining shares are owned by institutional investors. Comparatively, 68.9% of Newmont shares are owned by institutional investors. 0.1% of Newmont shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, 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.