Analyzing Entree Gold (OTCMKTS:ERLFF) and Norsk Hydro ASA (OTCMKTS:NHYDY)

Entree Gold (OTCMKTS:ERLFF) and Norsk Hydro ASA (OTCMKTS:NHYDY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Volatility and Risk

Entree Gold has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Norsk Hydro ASA has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Norsk Hydro ASA shares are owned by institutional investors. 3.4% of Entree Gold shares are owned by company insiders. Comparatively, 0.0% of Norsk Hydro ASA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Entree Gold and Norsk Hydro ASA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entree Gold	0	1	0	0	2.00
Norsk Hydro ASA	0	3	1	1	2.60

Earnings & Valuation

This table compares Entree Gold and Norsk Hydro ASA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entree Gold	N/A	N/A	-$14.32 million	($0.09)	-17.00
Norsk Hydro ASA	$19.41 billion	0.72	$538.47 million	$0.45	15.67

Norsk Hydro ASA has higher revenue and earnings than Entree Gold. Entree Gold is trading at a lower price-to-earnings ratio than Norsk Hydro ASA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Entree Gold and Norsk Hydro ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entree Gold	N/A	N/A	-229.63%
Norsk Hydro ASA	4.37%	11.24%	5.84%

Summary

Norsk Hydro ASA beats Entree Gold on 12 of the 13 factors compared between the two stocks.

About Entree Gold

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.