Analyzing New Gold (NYSE:NGD) & DeFi Technologies (OTC:DEFTF)

DeFi Technologies (OTC:DEFTF) and New Gold (NYSE:NGD) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DeFi Technologies and New Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeFi Technologies	0	0	2	0	3.00
New Gold	0	1	5	1	3.00

New Gold has a consensus target price of $7.38, indicating a potential downside of 30.09%. Given New Gold’s higher probable upside, analysts plainly believe New Gold is more favorable than DeFi Technologies.

Valuation and Earnings

This table compares DeFi Technologies and New Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DeFi Technologies	$7.67 million	169.46	-$15.03 million	$0.17	23.43
New Gold	$1.24 billion	6.73	-$64.50 million	$0.32	33.00

DeFi Technologies has higher earnings, but lower revenue than New Gold. DeFi Technologies is trading at a lower price-to-earnings ratio than New Gold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DeFi Technologies and New Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DeFi Technologies	N/A	184.49%	13.66%
New Gold	11.10%	13.70%	6.31%

Insider and Institutional Ownership

42.8% of New Gold shares are held by institutional investors. 0.2% of New Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

New Gold beats DeFi Technologies on 9 of the 13 factors compared between the two stocks.

About DeFi Technologies

DeFi Technologies Inc., a technology company, develops and lists exchange traded products in Canada, Bermuda, and the Cayman Islands. The company provides asset management services, such as investment vehicles, indirect exposure to underlying cryptocurrencies, digital asset indexes, and other decentralized finance instruments. It also participates in decentralized blockchain networks by processing data transactions that contribute to network security and stability, governance, and transaction validation. In addition, the company invests in decentralized finance companies in early-stage ventures. Further, it offers node management of decentralized protocols to support governance, security, and transaction validation for their networks. The company was formerly known as Valour Inc. and changed its name to DeFi Technologies Inc. in July 2023. DeFi Technologies Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.

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.