Analyzing Western Copper & Gold (NYSE:WRN) & Atlas Copco (OTCMKTS:ATLRF)

Atlas Copco (OTCMKTS:ATLRF) and Western Copper & Gold (NYSE:WRN) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

Atlas Copco has a beta of -0.45, suggesting that its stock price is 145% less volatile than the S&P 500. Comparatively, Western Copper & Gold has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Institutional and Insider Ownership

22.0% of Western Copper & Gold shares are held by institutional investors. 7.5% of Atlas Copco shares are held by company insiders. Comparatively, 4.6% of Western Copper & Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Atlas Copco and Western Copper & Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Copco	N/A	N/A	-51.79%
Western Copper & Gold	N/A	-3.53%	-3.45%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Atlas Copco and Western Copper & Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Copco	0	0	0	0	0.00
Western Copper & Gold	0	0	4	1	3.20

Western Copper & Gold has a consensus target price of $4.25, indicating a potential upside of 269.57%. Given Western Copper & Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Western Copper & Gold is more favorable than Atlas Copco.

Valuation & Earnings

This table compares Atlas Copco and Western Copper & Gold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Copco	$4.26 million	1,509.69	-$72.56 million	N/A	N/A
Western Copper & Gold	N/A	N/A	-$2.47 million	($0.02)	-57.50

Western Copper & Gold has lower revenue, but higher earnings than Atlas Copco.

Summary

Western Copper & Gold beats Atlas Copco on 8 of the 11 factors compared between the two stocks.

About Atlas Copco

Atlas Copco AB, together with its subsidiaries, provides productivity solutions. The company operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions primarily for use in the manufacturing and process industries. The company also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; and turbomolecular and cryogenic pumps, as well as abatement and integrated systems for the semiconductor and scientific, chemical process, food packaging, and paper handling industries. In addition, it offers pneumatic, hydraulic, and electric assembly tools, as well as control systems and associated software for safety-critical tightening; self-pierce riveting tools, dispensing equipment for adhesives and sealants, and flow drill fastening equipment; material removal tools, drills, and other pneumatic products; and machine vision solutions for customers in the automotive and general industries. Further, the company provides portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, oil and gas, construction, manufacturing, exploration drilling, and demolition industries, as well as specialty rental services. It operates in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. The company was founded in 1873 and is headquartered in Nacka, Sweden.

About Western Copper & Gold

Western Copper & Gold Corp. operates as an exploration stage company, which engages in the acquisition, exploration, and future development of mineral resource properties. It currently focuses on the development of the Casino Project. The company was founded on March 17, 2006 and is headquartered in Vancouver, Canada.