Contrasting Kinross Gold (NYSE:KGC) and Pelangio Exploration (OTCMKTS:PGXPF)

Kinross Gold (NYSE:KGC) and Pelangio Exploration (OTCMKTS:PGXPF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Insider and Institutional Ownership

63.7% of Kinross Gold shares are owned by institutional investors. 1.0% of Kinross Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Kinross Gold and Pelangio Exploration”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$5.15 billion	5.63	$948.80 million	$1.24	19.31
Pelangio Exploration	N/A	N/A	-$550,000.00	N/A	N/A

Kinross Gold has higher revenue and earnings than Pelangio Exploration.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kinross Gold and Pelangio Exploration, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinross Gold	0	2	8	4	3.14
Pelangio Exploration	0	0	0	0	0.00

Kinross Gold presently has a consensus target price of $27.56, indicating a potential upside of 15.11%. Given Kinross Gold’s stronger consensus rating and higher possible upside, research analysts plainly believe Kinross Gold is more favorable than Pelangio Exploration.

Profitability

This table compares Kinross Gold and Pelangio Exploration’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinross Gold	25.18%	20.04%	13.11%
Pelangio Exploration	N/A	N/A	-139.54%

Risk and Volatility

Kinross Gold has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500.

Summary

Kinross Gold beats Pelangio Exploration on 12 of the 12 factors compared between the two stocks.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.

About Pelangio Exploration

Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.