NovaGold Resources (NYSE:NG – Get Rating) and Sandstorm Gold (NYSE:SAND – Get Rating) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Institutional & Insider Ownership
52.5% of NovaGold Resources shares are held by institutional investors. Comparatively, 40.3% of Sandstorm Gold shares are held by institutional investors. 3.3% of NovaGold Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares NovaGold Resources and Sandstorm Gold’s gross revenue, earnings per share 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)||-41.54|
|Sandstorm Gold||$71.72 million||17.07||$27.62 million||$0.16||39.81|
Sandstorm Gold has higher revenue and earnings than NovaGold Resources. NovaGold Resources is trading at a lower price-to-earnings ratio than Sandstorm Gold, indicating that it is currently the more affordable of the two stocks.
This table compares NovaGold Resources and Sandstorm Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for NovaGold Resources and Sandstorm Gold, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sandstorm Gold has a consensus price target of $11.61, suggesting a potential upside of 82.28%. Given Sandstorm Gold’s higher probable upside, analysts plainly believe Sandstorm Gold is more favorable than NovaGold Resources.
Volatility and Risk
NovaGold Resources has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Sandstorm Gold has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Sandstorm Gold beats NovaGold Resources on 10 of the 12 factors compared between the two stocks.
About NovaGold Resources (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.
About Sandstorm Gold (Get Rating)
Sandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements (streams) from companies that have advanced stage development projects or operating mines. It offers upfront payments for companies to acquire a stream or royalty and receives the right to purchase a percentage of a mine's production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. The company has a portfolio of 230 streams and royalties. It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.
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