Osisko Mining (OTCMKTS:OBNNF) versus Newmont (NYSE:NEM) Critical Review

Newmont (NYSE:NEM) and Osisko Mining (OTCMKTS:OBNNF) 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, analyst recommendations, profitability, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Newmont	-20.19%	6.88%	3.57%
Osisko Mining	N/A	-1.01%	-0.82%

Insider and Institutional Ownership

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

Earnings & Valuation

This table compares Newmont and Osisko Mining’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmont	$11.81 billion	4.07	-$2.49 billion	($2.67)	-15.62
Osisko Mining	N/A	N/A	$165.48 million	$0.42	5.19

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

Analyst Ratings

This is a summary of recent ratings and target prices for Newmont and Osisko Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmont	0	6	9	1	2.69
Osisko Mining	0	0	1	0	3.00

Newmont presently has a consensus target price of $49.13, suggesting a potential upside of 17.80%. Osisko Mining has a consensus target price of $3.50, suggesting a potential upside of 60.55%. Given Osisko Mining’s stronger consensus rating and higher possible upside, analysts clearly believe Osisko Mining is more favorable than Newmont.

Summary

Newmont beats Osisko Mining on 7 of the 13 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 Mining

Osisko Mining Inc., a mineral exploration company, engages in the acquisition, exploration, and development of precious mineral deposits in Canada. The company primarily explores for gold deposits. It holds interest in the Windfall Lake Project, Quévillon Osborne Project, and Urban-Barry Project located in Québec, Canada; and Phoenix Properties located in Québec, Canada. The company was formerly known as Oban Mining Corporation and changed its name to Osisko Mining Inc. in June 2016. Osisko Mining Inc. is headquartered in Toronto, Canada.