Head to Head Comparison: Turquoise Hill Resources (TRQ) versus Centamin (CELTF)

Turquoise Hill Resources (NYSE: TRQ) and Centamin (OTCMKTS:CELTF) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

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Turquoise Hill Resources has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, Centamin has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Turquoise Hill Resources 19.29% 2.27% 1.43%
Centamin 15.84% 10.21% 9.83%

Institutional & Insider Ownership

33.8% 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 stock will outperform the market over the long term.

Valuation and Earnings

This table compares Turquoise Hill Resources and Centamin’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Turquoise Hill Resources $939.78 million 6.55 $181.24 million N/A N/A
Centamin $687.39 million 3.57 $266.00 million $0.21 10.14

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Turquoise Hill Resources and Centamin, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Turquoise Hill Resources 0 2 2 0 2.50
Centamin 0 0 0 0 N/A

Turquoise Hill Resources presently has a consensus target price of $4.75, suggesting a potential upside of 55.23%. Given Turquoise Hill Resources’ higher possible upside, research analysts clearly believe Turquoise Hill Resources is more favorable than Centamin.

Dividends

Centamin pays an annual dividend of $0.20 per share and has a dividend yield of 9.4%. Turquoise Hill Resources does not pay a dividend. Centamin pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Turquoise Hill Resources beats Centamin on 8 of the 13 factors compared between the two stocks.

Turquoise Hill Resources Company Profile

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company engages in mining copper, gold, silver, and molybdenum. Its principal material mineral resource property is the Oyu Tolgoi copper-gold mine located in the southern Mongolia. The company was formerly known as Ivanhoe Mines Ltd. and changed its name to Turquoise Hill Resources Ltd. in August 2012. The company was founded in 1994 and is headquartered in Vancouver, Canada.

Centamin Company Profile

Centamin plc, together with its subsidiaries, engages in the exploration, mining, and development of precious metals in Egypt, Burkina Faso, Côte d’Ivoire, United Kingdom, and Australia. The company explores for gold ore deposits. It primarily holds interest in the Sukari Gold Mine project, which covers an area of 160 square kilometers located in the south-easterly region of the Eastern Desert, Egypt. The company was incorporated in 1970 and is based in St Helier, the Channel Islands.

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