Gold Reserve (OTCMKTS:GDRZF) and Eldorado Gold (NYSE:EGO) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
This table compares Gold Reserve and Eldorado Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Gold Reserve and Eldorado Gold, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eldorado Gold has a consensus price target of $1.13, indicating a potential upside of 60.21%. Given Eldorado Gold’s higher probable upside, analysts plainly believe Eldorado Gold is more favorable than Gold Reserve.
Earnings & Valuation
This table compares Gold Reserve and Eldorado Gold’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gold Reserve||$170.69 million||1.37||$89.51 million||N/A||N/A|
|Eldorado Gold||$391.41 million||1.42||-$9.93 million||$0.02||35.11|
Gold Reserve has higher earnings, but lower revenue than Eldorado Gold.
Institutional & Insider Ownership
40.5% of Eldorado Gold shares are held by institutional investors. 12.8% of Gold Reserve 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.
Risk & Volatility
Gold Reserve has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500. Comparatively, Eldorado Gold has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.
Eldorado Gold beats Gold Reserve on 8 of the 11 factors compared between the two stocks.
Gold Reserve Company Profile
Gold Reserve Inc., an exploration stage company, acquires, explores, and develops mineral properties. The company primarily focuses on the Siembra Minera Project, an open pit gold-copper mining project located in Bolivar, Venezuela. It also has an interest in the LMS Gold Project in Alaska. The company was founded in 1956 and is based in Spokane, Washington.
Eldorado Gold Company Profile
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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