NovaGold Resources (NYSE:NG – Get Rating) and Fortuna Silver Mines (NYSE:FSM – Get Rating) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
This is a summary of current recommendations and price targets for NovaGold Resources and Fortuna Silver Mines, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortuna Silver Mines||0||0||1||0||3.00|
Fortuna Silver Mines has a consensus target price of $6.00, indicating a potential upside of 73.91%. Given Fortuna Silver Mines’ higher probable upside, analysts clearly believe Fortuna Silver Mines is more favorable than NovaGold Resources.
Volatility and Risk
Institutional & Insider Ownership
53.9% of NovaGold Resources shares are owned by institutional investors. Comparatively, 26.8% of Fortuna Silver Mines shares are owned by institutional investors. 3.3% of NovaGold Resources shares are owned by insiders. Comparatively, 1.0% of Fortuna Silver Mines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares NovaGold Resources and Fortuna Silver Mines’ 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||-$53.34 million||($0.16)||-36.06|
|Fortuna Silver Mines||$599.85 million||1.67||$59.40 million||$0.14||24.64|
Fortuna Silver Mines has higher revenue and earnings than NovaGold Resources. NovaGold Resources is trading at a lower price-to-earnings ratio than Fortuna Silver Mines, indicating that it is currently the more affordable of the two stocks.
This table compares NovaGold Resources and Fortuna Silver Mines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortuna Silver Mines||5.76%||4.63%||3.27%|
Fortuna Silver Mines beats NovaGold Resources on 10 of the 12 factors compared between the two stocks.
About NovaGold Resources
NovaGold Resources, Inc. is a mineral exploration company, which engages in the development of the Donlin Gold project in Alaska. The company was founded by Gregory Shawn Johnson, John W. Chisholm, Macisaac G. Angus, Rick van Nieuwenhuyse, and Gerald James McConnell on December 5, 1984 and is headquartered in Salt Lake City, UT.
About Fortuna Silver Mines
Fortuna Silver Mines, Inc. engages in the exploration, extraction and processing of precious and base metal in Latin America. It operates through the following segments: Minera Bateas S.A.C (Bateas), Compania Minera Cuzcatlan S.A. de C.V. (Cuzcatian), Mansfield Minera S.A. (Mansfield), and Corporate. The Beates segment operates the Caylloma silver, lead, and zinc mine. The Cuzcatlan segment handles the San Jose silver-gold mine. The Mansfield segment constructs the Lindero mine. The Corporate segment represents the corporate stewardship. The company was founded by Jorge Alberto Ganoza Durant, Simon T. P. Ridgway, and Mario David Szotlender on September 4, 1990 and is headquartered in Vancouver, Canada.
Receive News & Ratings for NovaGold Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NovaGold Resources and related companies with MarketBeat.com's FREE daily email newsletter.