New Gold (NYSE:NGD – Get Free Report) and NexMetals Mining (NASDAQ:NEXM – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares New Gold and NexMetals Mining”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Gold | $1.24 billion | 5.77 | -$64.50 million | $0.32 | 28.30 |
| NexMetals Mining | N/A | N/A | -$30.96 million | ($1.05) | -3.69 |
Analyst Recommendations
This is a summary of current ratings and price targets for New Gold and NexMetals Mining, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Gold | 0 | 1 | 5 | 1 | 3.00 |
| NexMetals Mining | 1 | 1 | 0 | 0 | 1.50 |
New Gold presently has a consensus price target of $7.38, indicating a potential downside of 18.46%. Given New Gold’s stronger consensus rating and higher possible upside, analysts clearly believe New Gold is more favorable than NexMetals Mining.
Institutional and Insider Ownership
42.8% of New Gold shares are owned by institutional investors. 0.2% of New Gold shares are owned by company 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.
Profitability
This table compares New Gold and NexMetals Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Gold | 11.10% | 13.70% | 6.31% |
| NexMetals Mining | N/A | -228.97% | -141.60% |
Summary
New Gold beats NexMetals Mining on 12 of the 13 factors compared between the two stocks.
About New Gold
New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.
About NexMetals Mining
North American Nickel Inc. operates as a mineral exploration and resource development company. The company engages in the exploration and development of mineral properties in Morocco and Canada, as well as in Botswana. Its principal asset is the Maniitsoq nickel-copper-cobalt-precious metal sulphide project covering an area of 3,048 square kilometers located in southwest Greenland. The company was formerly known as Widescope Resources Inc. and changed its name to North American Nickel Inc. in April 2010. North American Nickel Inc. was incorporated in 1983 and is headquartered in Vancouver, Canada.
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