New Gold (NYSE:NGD – Get Rating) and Centamin (OTCMKTS:CELTF – Get Rating) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Volatility and Risk
New Gold has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, Centamin has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Insider & Institutional Ownership
31.4% of New Gold shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings and Valuation
This table compares New Gold and Centamin’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Gold||$745.50 million||0.70||$140.60 million||$0.17||4.48|
|Centamin||$733.31 million||1.61||$101.53 million||N/A||N/A|
New Gold has higher revenue and earnings than Centamin.
This table compares New Gold and Centamin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
New Gold beats Centamin on 7 of the 9 factors compared between the two stocks.
About New Gold
New Gold Inc., an intermediate gold mining company, engages in the exploration, development, and operation of mineral properties. It primarily explores for gold, silver, and copper deposits. The company's principal operating properties include 100% interests in the Rainy River mine located in Ontario, Canada; and New Afton mine situated in British Columbia, Canada. It also operates the Cerro San Pedro mine in San Luis Potosí, Mexico. The company was incorporated in 1980 and is headquartered in Toronto, Canada.
Centamin plc engages in the exploration, mining, and development of precious metals in Egypt, Burkina Faso, Côte d'Ivoire, Jersey, the United Kingdom, and Australia. The company explores for gold deposits. Its principal asset is the Sukari Gold Mine project, which covers an area of approximately 160 square kilometers located in the Eastern Desert of Egypt. The company was incorporated in 2011 and is headquartered in Saint Helier, Jersey.
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