Eldorado Gold Corporation (NYSE: EGO) and Kinross Gold (NYSE:KGC) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Volatility and Risk
Eldorado Gold Corporation has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500.
Valuation & Earnings
This table compares Eldorado Gold Corporation and Kinross Gold’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eldorado Gold Corporation||$425.59 million||2.29||$143.89 million||($0.03)||-45.32|
|Kinross Gold||$3.48 billion||1.43||$1.04 billion||$0.05||80.02|
Kinross Gold has higher revenue and earnings than Eldorado Gold Corporation. Eldorado Gold Corporation is trading at a lower price-to-earnings ratio than Kinross Gold, indicating that it is currently the more affordable of the two stocks.
This table compares Eldorado Gold Corporation and Kinross Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eldorado Gold Corporation||-5.02%||0.52%||0.39%|
Insider and Institutional Ownership
55.5% of Eldorado Gold Corporation shares are owned by institutional investors. Comparatively, 59.2% of Kinross Gold shares are owned by institutional investors. 1.0% of Kinross Gold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Eldorado Gold Corporation and Kinross Gold, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eldorado Gold Corporation||2||6||0||0||1.75|
Eldorado Gold Corporation presently has a consensus price target of $2.93, indicating a potential upside of 115.44%. Kinross Gold has a consensus price target of $5.19, indicating a potential upside of 29.77%. Given Eldorado Gold Corporation’s higher probable upside, analysts plainly believe Eldorado Gold Corporation is more favorable than Kinross Gold.
Kinross Gold beats Eldorado Gold Corporation on 10 of the 13 factors compared between the two stocks.
Eldorado Gold Corporation Company Profile
Eldorado Gold Corporation (Eldorado) is a gold exploration, development and mining company. The Company’s geographical segments include Turkey, Brazil, Greece, Romania and Other. The Turkey segment includes the Kisladag and the Efemcukuru mines and exploration activities in Turkey. The Brazil segment includes the Vila Nova mine, Tocantinzinho project and exploration activities in Brazil. The Greece segment includes the Stratoni mine, the Olympias, Skouries, Perama Hill and Sapes projects, and exploration activities in Greece. The Romania segment includes the Certej project and exploration activities in Romania. Other segment includes operations of the Company’s corporate office and exploration activities in other countries. The Company has operations and ongoing exploration and development projects in Turkey, Greece, Brazil and Romania. Its Operating gold mines include Kisladag in Turkey, and Efemcukuru in Turkey.
Kinross Gold Company Profile
Kinross Gold Corporation is a gold mining company. The Company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. The Company’s segments include Fort Knox, Round Mountain, Bald Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. Fort Knox is an open-pit gold mine located in Fairbanks, Alaska. Round Mountain open-pit mine is located in Nye County, Nevada. Bald Mountain open-pit mine is located in Nevada. Kettle River-Buckhorn mine is located in northern Washington State. The Kupol segment includes the Kupol and Dvoinoye mines. Paracatu is a gold mine located in the State of Minas Gerais, Brazil. Maricunga open pit mine is located in Copiapo, Chile. Tasiast mine is located in north-western Mauritania. Chirano is located in southwestern Ghana.
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