Comparing New Gold (NGD) and Turquoise Hill Resources (TRQ)

New Gold (NYSE: NGD) and Turquoise Hill Resources (NYSE:TRQ) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

This table compares New Gold and Turquoise Hill Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Gold 12.45% 4.03% 2.24%
Turquoise Hill Resources 14.20% 1.60% 1.01%

Insider & Institutional Ownership

32.9% of Turquoise Hill Resources shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares New Gold and Turquoise Hill Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New Gold $704.10 million 2.84 $282.10 million N/A N/A
Turquoise Hill Resources $892.02 million 6.84 $159.41 million $0.06 50.51

New Gold has higher revenue, but lower earnings than Turquoise Hill Resources.

Analyst Ratings

This is a summary of current recommendations for New Gold and Turquoise Hill Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Gold 0 5 4 0 2.44
Turquoise Hill Resources 0 3 3 0 2.50

New Gold presently has a consensus target price of $4.14, suggesting a potential upside of 19.36%. Turquoise Hill Resources has a consensus target price of $5.00, suggesting a potential upside of 65.02%. Given Turquoise Hill Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Turquoise Hill Resources is more favorable than New Gold.

Summary

Turquoise Hill Resources beats New Gold on 7 of the 11 factors compared between the two stocks.

New Gold Company Profile

New Gold Inc. is an intermediate gold mining company. The Company is engaged in the development and operation of mineral properties. Its segments include New Afton, Mesquite, Peak Mines, Cerro San Pedro, Corporate and Other. It has operating mines in Canada, the United States, Australia and Mexico; development projects in Canada, and a stream on gold production from a development property in Chile. Its development projects include Rainy River and Blackwater projects, which are located in Canada. Its Rainy River project is a gold project located approximately 65 kilometers northwest of Fort Frances in northwestern Ontario, Canada. The Rainy River comprises approximately 192 square kilometers of various rights and claims. The Blackwater Project is located approximately 160 kilometers southwest of the city of Prince George in central British Columbia, Canada and 110 kilometers southwest of the town of Vanderhoof. The Blackwater project covers an area of over 1,000 square kilometers.

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).

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