Barrick Gold (ABX) & Endeavour Silver (EXK) Head to Head Analysis

Barrick Gold (NYSE:ABX) and Endeavour Silver (NYSE:EXK) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Dividends

Barrick Gold pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Endeavour Silver does not pay a dividend. Barrick Gold pays out 16.0% of its earnings in the form of a dividend.

Risk & Volatility

Barrick Gold has a beta of -0.37, meaning that its share price is 137% less volatile than the S&P 500. Comparatively, Endeavour Silver has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500.

Profitability

This table compares Barrick Gold and Endeavour Silver’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barrick Gold -3.38% 6.13% 2.74%
Endeavour Silver 0.21% 0.23% 0.19%

Earnings & Valuation

This table compares Barrick Gold and Endeavour Silver’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barrick Gold $8.37 billion 1.59 $1.44 billion $0.75 15.21
Endeavour Silver $150.50 million 1.99 $9.68 million $0.08 29.00

Barrick Gold has higher revenue and earnings than Endeavour Silver. Barrick Gold is trading at a lower price-to-earnings ratio than Endeavour Silver, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Barrick Gold and Endeavour Silver, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barrick Gold 1 14 3 0 2.11
Endeavour Silver 0 1 2 0 2.67

Barrick Gold presently has a consensus price target of $15.15, indicating a potential upside of 32.81%. Endeavour Silver has a consensus price target of $5.00, indicating a potential upside of 115.52%. Given Endeavour Silver’s stronger consensus rating and higher probable upside, analysts clearly believe Endeavour Silver is more favorable than Barrick Gold.

Institutional & Insider Ownership

52.7% of Barrick Gold shares are owned by institutional investors. Comparatively, 19.1% of Endeavour Silver shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Barrick Gold beats Endeavour Silver on 8 of the 15 factors compared between the two stocks.

About Barrick Gold

Barrick Gold Corporation engages in the exploration and development of mineral properties. It primarily explores for gold and copper deposits. The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zaldívar, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia. It also owns gold mines and exploration properties in Africa; and gold projects located in South America and North America. Barrick Gold Corporation has strategic cooperation agreement with Shandong Gold Group Co. Ltd. The company was founded in 1983 and is headquartered in Toronto, Canada.

About Endeavour Silver

Endeavour Silver Corp., a mid-tier precious metals mining company, engages in the mining, evaluation, acquisition, exploration, development, extraction, processing, refining, and reclamation of silver in Mexico and Chile. The company also explores for gold deposits. It owns interests in the Guanaceví mine located in the Guanaceví district, Durango, Mexico; and the Bolañitos and El Cubo silver-gold mines located in the northern parts of the Guanajuato and La Luz silver districts in the state of Guanajuato, Mexico. The company also has interests in various exploration and development projects, including the Terronera property in Jalisco state; the El Compas property in Zacatecas State; and the Parral property located in Chihuahua State, Mexico. In addition, it holds interests in the Guadalupe y Calvo property located in Chihuahua State; and the Lourdes located in the state of Guanajuato, Mexico. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was founded in 1981 and is headquartered in Vancouver, Canada.

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