Critical Comparison: Iamgold (NYSE:IAG) & Jaguar Mining (OTCMKTS:JAGGF)

Iamgold (NYSE:IAG) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Profitability

This table compares Iamgold and Jaguar Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iamgold	15.39%	10.39%	6.72%
Jaguar Mining	-10.83%	3.72%	2.55%

Insider & Institutional Ownership

47.1% of Iamgold shares are owned by institutional investors. 0.2% of Iamgold shares are owned by company insiders. Comparatively, 0.6% of Jaguar Mining shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Iamgold has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares Iamgold and Jaguar Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iamgold	$2.23 billion	5.52	$819.60 million	$0.60	34.81
Jaguar Mining	$158.63 million	3.37	-$1.29 million	($0.19)	-33.00

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

Analyst Ratings

This is a breakdown of recent ratings for Iamgold and Jaguar Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iamgold	0	3	5	2	2.90
Jaguar Mining	0	0	0	0	0.00

Iamgold presently has a consensus price target of $17.25, suggesting a potential downside of 17.40%. Given Iamgold’s stronger consensus rating and higher possible upside, analysts clearly believe Iamgold is more favorable than Jaguar Mining.

Summary

Iamgold beats Jaguar Mining on 14 of the 15 factors compared between the two stocks.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.