Financial Review: Eldorado Gold (OTCMKTS:ELDXF) and TRX Gold (NYSE:TRX)

TRX Gold (NYSE:TRX) and Eldorado Gold (OTCMKTS:ELDXF) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Profitability

This table compares TRX Gold and Eldorado Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TRX Gold	-3.06%	-3.84%	-2.71%
Eldorado Gold	N/A	N/A	N/A

Insider & Institutional Ownership

1.1% of TRX Gold shares are held by institutional investors. 2.3% of TRX Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for TRX Gold and Eldorado Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TRX Gold	0	0	2	0	3.00
Eldorado Gold	0	0	0	0	0.00

TRX Gold currently has a consensus price target of $1.58, indicating a potential upside of 342.42%. Given TRX Gold’s stronger consensus rating and higher probable upside, analysts clearly believe TRX Gold is more favorable than Eldorado Gold.

Earnings and Valuation

This table compares TRX Gold and Eldorado Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TRX Gold	$38.32 million	2.59	$2.25 million	N/A	N/A
Eldorado Gold	N/A	N/A	N/A	N/A	N/A

TRX Gold has higher revenue and earnings than Eldorado Gold.

Summary

TRX Gold beats Eldorado Gold on 6 of the 9 factors compared between the two stocks.

About TRX Gold

TRX Gold Corporation engages in the exploration, development, and production of mineral property interests in the United Republic of Tanzania. The company primarily explores for gold deposits. It holds interests in the Buckreef gold project that comprises a single Special Mining License covering an area of 16.04 square kilometers and 12 Prospecting Licenses covering 98.19 square kilometers located in north-central Tanzania. The company was formerly known as Tanzanian Gold Corporation and changed its name to TRX Gold Corporation in May 2022. TRX Gold Corporation was incorporated in 1990 and is based in Oakville, Canada.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemcukuru gold mines located in western Turkey; 100% interest in Lamaque gold mines located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1992 and is headquartered in Vancouver, Canada.