Turquoise Hill Resources (NYSE: TRQ) and Gold Resource (NASDAQ:GORO) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
Valuation & Earnings
This table compares Turquoise Hill Resources and Gold Resource’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Turquoise Hill Resources||$892.02 million||7.56||$159.41 million||$0.06||55.84|
|Gold Resource||$85.35 million||2.50||$20.77 million||N/A||N/A|
Turquoise Hill Resources has higher revenue and earnings than Gold Resource.
Institutional & Insider Ownership
32.9% of Turquoise Hill Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Turquoise Hill Resources and Gold Resource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turquoise Hill Resources||14.20%||1.60%||1.01%|
This is a summary of current recommendations and price targets for Turquoise Hill Resources and Gold Resource, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turquoise Hill Resources||0||3||3||0||2.50|
Turquoise Hill Resources presently has a consensus target price of $5.00, suggesting a potential upside of 49.25%. Given Turquoise Hill Resources’ higher probable upside, analysts plainly believe Turquoise Hill Resources is more favorable than Gold Resource.
Turquoise Hill Resources beats Gold Resource on 7 of the 10 factors compared between the two stocks.
Turquoise Hill Resources Company Profile
Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).
Gold Resource Company Profile
Gold Resource Corporation is a mining company. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and dore containing gold and silver at the Aguila Project within its Oaxaca Mining Unit located in the southern state of Oaxaca, Mexico. The Company has two units in North America, the Oaxaca Mining Unit and the Nevada Mining Unit. The Company’s mineral properties are classified into two categories, such as Operating Properties and Exploration Properties. As of December 31, 2016, the Company had interest in nine properties, where over six of its properties, including one Operating Property and five Exploration Properties, are within its Oaxaca Mining Unit, which is located in the southern state of Oaxaca, Mexico. As of December 31, 2016, the Company also had three Exploration Properties within its Nevada Mining Unit located in south central Nevada’s Walker Lane Mineral Belt in the United States.
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