Reviewing B2Gold (NYSE:BTG) and Barrick Gold (NASDAQ:GOLD) –

B2Gold (NYSE:BTG – Get Rating) and Barrick Gold (NASDAQ:GOLD – Get Rating) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares B2Gold and Barrick Gold’s net margins, return on equity and return on assets.

Volatility & Risk

B2Gold has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Barrick Gold has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for B2Gold and Barrick Gold, as reported by MarketBeat.

B2Gold presently has a consensus price target of $9.25, suggesting a potential upside of 123.43%. Given B2Gold’s higher probable upside, research analysts plainly believe B2Gold is more favorable than Barrick Gold.

Insider & Institutional Ownership

62.7% of B2Gold shares are owned by institutional investors. Comparatively, 58.2% of Barrick Gold shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares B2Gold and Barrick Gold’s gross revenue, earnings per share (EPS) and valuation.

Barrick Gold has higher revenue and earnings than B2Gold. B2Gold is trading at a lower price-to-earnings ratio than Barrick Gold, indicating that it is currently the more affordable of the two stocks.

Dividends

B2Gold pays an annual dividend of $0.16 per share and has a dividend yield of 3.9%. Barrick Gold pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. B2Gold pays out 41.0% of its earnings in the form of a dividend. Barrick Gold pays out 36.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Barrick Gold has raised its dividend for 1 consecutive years.

Summary

B2Gold beats Barrick Gold on 8 of the 15 factors compared between the two stocks.

B2Gold Company Profile (Get Rating)

B2Gold Corp. operates as a gold producer with three operating mines in Mali, the Philippines, and Namibia. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 25% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan, and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.

Barrick Gold Company Profile (Get Rating)

Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties. It has ownership interests in producing gold mines that are located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Tanzania, and the United States. The company also has ownership interests in producing copper mines located in Chile, Saudi Arabia, and Zambia; and various other projects located throughout the Americas and Africa. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada.

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