Analyzing Minco Capital (OTCMKTS:MGHCF) & Centerra Gold (NYSE:CGAU)

Centerra Gold (NYSE:CGAU) and Minco Capital (OTCMKTS:MGHCF) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Insider & Institutional Ownership

55.4% of Centerra Gold shares are owned by institutional investors. 0.2% of Centerra Gold 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Centerra Gold and Minco Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerra Gold	0	4	5	2	2.82
Minco Capital	0	0	0	0	0.00

Centerra Gold currently has a consensus price target of $14.17, indicating a potential upside of 13.90%. Given Centerra Gold’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Centerra Gold is more favorable than Minco Capital.

Earnings & Valuation

This table compares Centerra Gold and Minco Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerra Gold	$1.29 billion	1.95	$80.39 million	$1.64	7.58
Minco Capital	N/A	N/A	-$290,000.00	$0.01	4.46

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

Profitability

This table compares Centerra Gold and Minco Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerra Gold	26.35%	10.47%	7.60%
Minco Capital	N/A	10.65%	10.32%

Risk & Volatility

Centerra Gold has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Minco Capital has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Summary

Centerra Gold beats Minco Capital on 12 of the 14 factors compared between the two stocks.

About Centerra Gold

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey. The company was incorporated in 2002 and is based in Toronto, Canada.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.