Financial Analysis: Taseko Mines (NYSE:TGB) and Gold Resource (NYSE:GORO)

Taseko Mines (NYSE:TGBGet Free Report) and Gold Resource (NYSE:GOROGet Free Report) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Institutional & Insider Ownership

17.9% of Taseko Mines shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 2.3% of Taseko Mines shares are held by insiders. Comparatively, 2.5% of Gold Resource shares are held 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.

Earnings & Valuation

This table compares Taseko Mines and Gold Resource”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Taseko Mines $434.63 million 1.44 $61.28 million ($0.03) -68.33
Gold Resource $97.73 million 0.38 -$16.02 million ($0.49) -0.80

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

Analyst Ratings

This is a summary of current ratings and target prices for Taseko Mines and Gold Resource, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taseko Mines 0 0 3 1 3.25
Gold Resource 0 0 1 0 3.00

Taseko Mines currently has a consensus price target of $3.50, indicating a potential upside of 70.73%. Gold Resource has a consensus price target of $1.75, indicating a potential upside of 348.26%. Given Gold Resource’s higher possible upside, analysts clearly believe Gold Resource is more favorable than Taseko Mines.

Volatility and Risk

Taseko Mines has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Taseko Mines and Gold Resource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taseko Mines -2.09% 12.04% 2.89%
Gold Resource -61.31% -35.25% -16.15%

Summary

Taseko Mines beats Gold Resource on 11 of the 14 factors compared between the two stocks.

About Taseko Mines

(Get Free Report)

Taseko Mines Limited, a mining company, acquires, develops, and operates mineral properties. It explores for copper, molybdenum, gold, niobium, and silver deposits. The company’s principal asset comprises 100% interest owned the Gibraltar mine located in British Columbia. It also holds interest in the Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project located in British Columbia; and the Florence copper project located in Arizona. Taseko Mines Limited was incorporated in 1966 and is headquartered in Vancouver, Canada.

About Gold Resource

(Get Free Report)

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.

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