Rare Element Resources (OTCMKTS:REEMF – Get Free Report) and B2Gold (NYSE:BTG – Get Free Report) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Valuation and Earnings
This table compares Rare Element Resources and B2Gold”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Rare Element Resources | N/A | N/A | -$9.00 million | ($0.03) | -12.11 |
B2Gold | $1.91 billion | 1.89 | $10.10 million | ($0.56) | -4.91 |
B2Gold has higher revenue and earnings than Rare Element Resources. Rare Element Resources is trading at a lower price-to-earnings ratio than B2Gold, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Rare Element Resources | N/A | -55.37% | -50.17% |
B2Gold | -38.42% | 7.53% | 5.56% |
Risk and Volatility
Rare Element Resources has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, B2Gold has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Rare Element Resources and B2Gold, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Rare Element Resources | 0 | 0 | 0 | 0 | 0.00 |
B2Gold | 0 | 5 | 1 | 0 | 2.17 |
B2Gold has a consensus price target of $4.12, suggesting a potential upside of 49.70%. Given B2Gold’s stronger consensus rating and higher possible upside, analysts plainly believe B2Gold is more favorable than Rare Element Resources.
Institutional & Insider Ownership
61.4% of B2Gold shares are owned by institutional investors. 1.4% of Rare Element Resources shares are owned by insiders. Comparatively, 1.2% of B2Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
B2Gold beats Rare Element Resources on 9 of the 13 factors compared between the two stocks.
About Rare Element Resources
Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States and Canada. It holds 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project; and the Sundance Gold project located in Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.
About B2Gold
B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.
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