Gold Resource (NYSE:GORO – Get Free Report) and Namib Minerals (NASDAQ:NAMM – Get Free Report) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Volatility & Risk
Gold Resource has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Namib Minerals has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500.
Earnings and Valuation
This table compares Gold Resource and Namib Minerals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gold Resource | $49.82 million | 2.53 | -$16.02 million | ($0.42) | -2.20 |
| Namib Minerals | $80.35 million | 1.76 | -$20.75 million | ($1.27) | -2.07 |
Gold Resource has higher earnings, but lower revenue than Namib Minerals. Gold Resource is trading at a lower price-to-earnings ratio than Namib Minerals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 59.5% of Namib Minerals shares are owned by institutional investors. 1.3% of Gold Resource shares are owned by insiders. Comparatively, 30.5% of Namib Minerals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Gold Resource and Namib Minerals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gold Resource | -61.31% | -35.25% | -16.15% |
| Namib Minerals | N/A | N/A | -56.66% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Gold Resource and Namib Minerals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gold Resource | 0 | 0 | 1 | 0 | 3.00 |
| Namib Minerals | 1 | 0 | 0 | 0 | 1.00 |
Gold Resource presently has a consensus target price of $1.50, indicating a potential upside of 62.34%. Given Gold Resource’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gold Resource is more favorable than Namib Minerals.
Summary
Gold Resource beats Namib Minerals on 9 of the 14 factors compared between the two stocks.
About Gold Resource
Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.
About Namib Minerals
Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.
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