Head-To-Head Contrast: NovaGold Resources (NYSE:NG) versus Centerra Gold (NYSE:CGAU)

NovaGold Resources (NYSE:NGGet Rating) and Centerra Gold (NYSE:CGAUGet Rating) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NovaGold Resources and Centerra Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NovaGold Resources 0 0 0 0 N/A
Centerra Gold 0 3 4 0 2.57

Centerra Gold has a consensus target price of $13.00, indicating a potential upside of 60.30%. Given Centerra Gold’s higher possible upside, analysts plainly believe Centerra Gold is more favorable than NovaGold Resources.

Profitability

This table compares NovaGold Resources and Centerra Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NovaGold Resources N/A -51.33% -21.16%
Centerra Gold -47.44% 9.21% 7.04%

Insider & Institutional Ownership

52.5% of NovaGold Resources shares are owned by institutional investors. Comparatively, 37.4% of Centerra Gold shares are owned by institutional investors. 3.3% of NovaGold Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares NovaGold Resources and Centerra Gold’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NovaGold Resources N/A N/A -$40.54 million ($0.13) -43.69
Centerra Gold $900.14 million 2.68 -$381.77 million ($1.55) -5.23

NovaGold Resources has higher earnings, but lower revenue than Centerra Gold. NovaGold Resources is trading at a lower price-to-earnings ratio than Centerra Gold, indicating that it is currently the more affordable of the two stocks.

NovaGold Resources Company Profile (Get Rating)

NovaGold Resources Inc. explores for and develops gold mineral properties in the United States. Its principal asset is the Donlin Gold project consisting of 493 mining claims covering an area of approximately 29,008 hectares located in the Kuskokwim region of southwestern Alaska. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was incorporated in 1984 and is based in Vancouver, Canada.

Centerra Gold Company Profile (Get Rating)

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects include the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt Gold Mine located in Turkey. The company was incorporated in 2002 and is headquartered in Toronto, Canada.

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