Gold Resource (NYSE:GORO – Get Free Report) and Centerra Gold (NYSE:CGAU – Get Free Report) 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 earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares Gold Resource and Centerra Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gold Resource | -61.31% | -35.25% | -16.15% |
| Centerra Gold | 8.31% | 10.34% | 7.70% |
Risk & Volatility
Gold Resource has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Centerra Gold has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gold Resource | $97.73 million | 0.37 | -$16.02 million | ($0.49) | -0.78 |
| Centerra Gold | $1.09 billion | 1.21 | -$81.28 million | $0.48 | 13.18 |
Gold Resource has higher earnings, but lower revenue than Centerra Gold. Gold Resource is trading at a lower price-to-earnings ratio than Centerra Gold, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 55.4% of Centerra Gold shares are owned by institutional investors. 2.5% of Gold Resource shares are owned by insiders. Comparatively, 0.2% of Centerra Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Gold Resource and Centerra Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gold Resource | 0 | 0 | 1 | 0 | 3.00 |
| Centerra Gold | 0 | 2 | 2 | 0 | 2.50 |
Gold Resource presently has a consensus price target of $1.75, indicating a potential upside of 357.16%. Centerra Gold has a consensus price target of $11.00, indicating a potential upside of 73.91%. Given Gold Resource’s stronger consensus rating and higher probable upside, equities analysts plainly believe Gold Resource is more favorable than Centerra Gold.
Summary
Centerra Gold beats Gold Resource on 9 of the 14 factors compared between the two stocks.
About Gold Resource
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 assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.
About Centerra Gold
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 are 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 based in Toronto, Canada.
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