Salzgitter (OTCMKTS:SZGPY – Get Free Report) and New Found Gold (NYSE:NFGC – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Risk and Volatility
Salzgitter has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, New Found Gold has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Salzgitter and New Found Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Salzgitter | 0 | 2 | 5 | 0 | 2.71 |
| New Found Gold | 0 | 1 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares Salzgitter and New Found Gold”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Salzgitter | $10.16 billion | 0.26 | -$83.95 million | $0.12 | 40.70 |
| New Found Gold | $31.42 million | 21.49 | -$59.18 million | ($0.20) | -8.75 |
New Found Gold has lower revenue, but higher earnings than Salzgitter. New Found Gold is trading at a lower price-to-earnings ratio than Salzgitter, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Salzgitter and New Found Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Salzgitter | 0.65% | 1.29% | 0.54% |
| New Found Gold | N/A | -82.80% | -68.88% |
Insider and Institutional Ownership
3.4% of New Found Gold shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Salzgitter beats New Found Gold on 9 of the 12 factors compared between the two stocks.
About Salzgitter
Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.
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