Gold Resource (NYSE:GORO) & China Natural Resources (NASDAQ:CHNR) Critical Comparison

Gold Resource (NYSE:GOROGet Rating) and China Natural Resources (NASDAQ:CHNRGet Rating) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Institutional & Insider Ownership

28.6% of Gold Resource shares are held by institutional investors. Comparatively, 1.8% of China Natural Resources shares are held by institutional investors. 1.1% of Gold Resource shares are held by company insiders. Comparatively, 23.2% of China Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Gold Resource and China Natural Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Resource 0 0 2 0 3.00
China Natural Resources 0 0 0 0 N/A

Gold Resource presently has a consensus target price of $4.75, indicating a potential upside of 158.15%. Given Gold Resource’s higher probable upside, research analysts plainly believe Gold Resource is more favorable than China Natural Resources.

Earnings and Valuation

This table compares Gold Resource and China Natural Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gold Resource $125.20 million 1.30 $8.03 million $0.13 14.15
China Natural Resources $2.95 million 5.71 -$7.58 million N/A N/A

Gold Resource has higher revenue and earnings than China Natural Resources.

Risk and Volatility

Gold Resource has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, China Natural Resources has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Gold Resource and China Natural Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gold Resource 7.26% 9.35% 5.70%
China Natural Resources N/A N/A N/A

Summary

Gold Resource beats China Natural Resources on 9 of the 11 factors compared between the two stocks.

About Gold Resource

(Get Rating)

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal asset is the 100% owned Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was founded in 1998 and is headquartered in Denver, Colorado.

About China Natural Resources

(Get Rating)

China Natural Resources, Inc., through its subsidiaries, engages in the exploration and mining of metal properties in the People's Republic of China. It explores for lead, silver, and other nonferrous metals. The company holds interest in the Moruogu Tong mine that covers an area of 7.81 square kilometers located in Bayannaoer City, Inner Mongolia. It also offers equipment for rural wastewater treatment; and engineering, procurement, and construction services related to wastewater treatment. The company was incorporated in 1993 and is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. is a subsidiary of Feishang Group Limited.

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