Head to Head Analysis: Newmont (NYSE:NEM) vs. Osisko Development (NYSE:ODV)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Newmont and Osisko Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmont	1	7	8	2	2.61
Osisko Development	0	0	0	0	0.00

Newmont currently has a consensus price target of $53.44, indicating a potential upside of 29.22%. Given Newmont’s stronger consensus rating and higher probable upside, research analysts clearly believe Newmont is more favorable than Osisko Development.

Insider & Institutional Ownership

68.9% of Newmont shares are owned by institutional investors. Comparatively, 15.2% of Osisko Development shares are owned by institutional investors. 0.1% of Newmont shares are owned by company insiders. Comparatively, 0.9% of Osisko Development shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Newmont has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Newmont and Osisko Development’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%
Osisko Development	-1,817.64%	-11.51%	-8.41%

Valuation and Earnings

This table compares Newmont and Osisko Development”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmont	$11.81 billion	3.99	-$2.49 billion	($1.52)	-27.21
Osisko Development	$23.43 million	9.06	-$134.73 million	($1.81)	-0.86

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

Summary

Newmont beats Osisko Development on 10 of the 15 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 Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.