Sigma Lithium (NASDAQ:SGML – Get Free Report) and Centerra Gold (NYSE:CGAU – Get Free Report) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Earnings & Valuation
This table compares Sigma Lithium and Centerra Gold”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sigma Lithium | $110.01 million | 8.04 | -$50.19 million | ($0.24) | -32.69 |
| Centerra Gold | $1.38 billion | 2.87 | $583.99 million | $3.13 | 6.49 |
Centerra Gold has higher revenue and earnings than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than Centerra Gold, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sigma Lithium has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Centerra Gold has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
Profitability
This table compares Sigma Lithium and Centerra Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sigma Lithium | -19.36% | -37.40% | -7.66% |
| Centerra Gold | 36.92% | 15.35% | 10.73% |
Insider & Institutional Ownership
64.9% of Sigma Lithium shares are owned by institutional investors. Comparatively, 55.4% of Centerra Gold shares are owned by institutional investors. 48.6% of Sigma Lithium 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, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Sigma Lithium and Centerra Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sigma Lithium | 3 | 2 | 3 | 0 | 2.00 |
| Centerra Gold | 1 | 1 | 5 | 0 | 2.57 |
Sigma Lithium presently has a consensus price target of $14.30, suggesting a potential upside of 82.28%. Centerra Gold has a consensus price target of $21.00, suggesting a potential upside of 3.40%. Given Sigma Lithium’s higher probable upside, equities analysts clearly believe Sigma Lithium is more favorable than Centerra Gold.
Summary
Centerra Gold beats Sigma Lithium on 10 of the 14 factors compared between the two stocks.
About Sigma Lithium
Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.
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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