Newmont (NYSE:NEM) vs. Osisko Development (NYSE:ODV) Critical Contrast

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

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Osisko Development and Newmont, as provided by MarketBeat.com.

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

Newmont has a consensus target price of $53.37, suggesting a potential upside of 12.30%. Given Newmont’s stronger consensus rating and higher probable upside, analysts plainly believe Newmont is more favorable than Osisko Development.

Risk & Volatility

Osisko Development has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Osisko Development	-1,817.64%	-11.51%	-8.41%
Newmont	-7.03%	9.80%	5.18%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osisko Development	$23.43 million	8.54	-$134.73 million	($1.81)	-0.81
Newmont	$11.81 billion	4.58	-$2.49 billion	($1.52)	-31.27

Osisko Development has higher earnings, but lower revenue 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 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.

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.