Randgold Resources (NASDAQ: GOLD) and Eldorado Gold (NYSE:EGO) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
This is a breakdown of recent recommendations and price targets for Randgold Resources and Eldorado Gold, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Randgold Resources presently has a consensus price target of $99.67, indicating a potential upside of 29.71%. Eldorado Gold has a consensus price target of $1.20, indicating a potential upside of 3.45%. Given Randgold Resources’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Randgold Resources is more favorable than Eldorado Gold.
This table compares Randgold Resources and Eldorado Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Randgold Resources and Eldorado Gold’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Randgold Resources||$1.28 billion||5.67||$278.01 million||$2.92||26.32|
|Eldorado Gold||$391.41 million||2.35||-$9.93 million||$0.02||58.00|
Randgold Resources has higher revenue and earnings than Eldorado Gold. Randgold Resources is trading at a lower price-to-earnings ratio than Eldorado Gold, indicating that it is currently the more affordable of the two stocks.
Randgold Resources pays an annual dividend of $1.98 per share and has a dividend yield of 2.6%. Eldorado Gold does not pay a dividend. Randgold Resources pays out 67.8% of its earnings in the form of a dividend.
Institutional and Insider Ownership
35.7% of Randgold Resources shares are owned by institutional investors. Comparatively, 40.9% of Eldorado Gold shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Randgold Resources has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Eldorado Gold has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
Randgold Resources beats Eldorado Gold on 11 of the 15 factors compared between the two stocks.
About Randgold Resources
Randgold Resources Limited is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. As of December 31, 2016, Morila mine has produced 122,370 ounces (oz) of gold. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. As of December 31, 2016, Loulo mine has produced 350,604 oz of gold. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA.
About Eldorado Gold
Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, and mining of gold properties in Turkey, Greece, Brazil, Serbia, Canada, and Romania. The company holds 100% interests in the Kisladag and Efemcukuru gold mines in Turkey; Lamaque gold project in Canada; Perama Hill gold-silver project and Sapes in Greece; and Vila Nova iron ore mine and Tocantinzinho gold project in Brazil. It also holds 95% interests in Olympias gold mine, Stratoni silver-lead-zinc mine, and Skouries gold-copper project in Greece; and 80.5% interests in Certej gold-silver project 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 founded in 1992 and is headquartered in Vancouver, Canada.
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