Analyzing New Gold (NYSE:NGD) and International Tower Hill Mines (NYSE:THM)

International Tower Hill Mines (NYSE:THMGet Free Report) and New Gold (NYSE:NGDGet Free Report) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares International Tower Hill Mines and New Gold”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
International Tower Hill Mines N/A N/A -$3.40 million ($0.01) -84.45
New Gold $941.50 million 4.15 -$64.50 million $0.17 29.00

International Tower Hill Mines has higher earnings, but lower revenue than New Gold. International Tower Hill Mines 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 International Tower Hill Mines and New Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Tower Hill Mines N/A -5.82% -5.80%
New Gold 11.10% 13.70% 6.31%

Risk & Volatility

International Tower Hill Mines has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, New Gold has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for International Tower Hill Mines and New Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Tower Hill Mines 0 0 0 0 0.00
New Gold 0 1 4 2 3.14

New Gold has a consensus price target of $4.13, indicating a potential downside of 16.16%. Given New Gold’s stronger consensus rating and higher probable upside, analysts clearly believe New Gold is more favorable than International Tower Hill Mines.

Insider & Institutional Ownership

54.6% of International Tower Hill Mines shares are owned by institutional investors. Comparatively, 42.8% of New Gold shares are owned by institutional investors. 2.5% of International Tower Hill Mines shares are owned by insiders. Comparatively, 0.2% of New Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

New Gold beats International Tower Hill Mines on 11 of the 14 factors compared between the two stocks.

About International Tower Hill Mines

(Get Free Report)

International Tower Hill Mines Ltd. is a Canada-based resource exploration company possessing a portfolio of Alaskan and Nevada based gold and base metal exploration projects. The Company is currently focused on the Livengood Gold Project located in the north of Fairbanks, Alaska. International Tower Hill Mines Ltd. is headquartered in Vancouver, Canada.

About New Gold

(Get Free Report)

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.

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