Contrasting New Gold (NGD) and Its Competitors

New Gold (NYSE: NGD) is one of 79 public companies in the “Metal mining” industry, but how does it compare to its competitors? We will compare New Gold to related companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Volatility & Risk

New Gold has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500. Comparatively, New Gold’s competitors have a beta of 0.42, indicating that their average stock price is 58% less volatile than the S&P 500.

Valuation and Earnings

This table compares New Gold and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
New Gold $630.60 million -$73.50 million -25.75
New Gold Competitors $6.15 billion $776.64 million -12.13

New Gold’s competitors have higher revenue and earnings than New Gold. New Gold is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

37.7% of New Gold shares are held by institutional investors. Comparatively, 22.1% of shares of all “Metal mining” companies are held by institutional investors. 9.4% of shares of all “Metal mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares New Gold and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Gold -17.00% -5.94% -2.30%
New Gold Competitors -9.22% 2.84% 0.12%

Analyst Recommendations

This is a summary of current ratings and target prices for New Gold and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Gold 1 1 0 0 1.50
New Gold Competitors 649 1846 1940 105 2.33

New Gold currently has a consensus price target of $1.88, indicating a potential downside of 8.98%. As a group, “Metal mining” companies have a potential upside of 29.58%. Given New Gold’s competitors stronger consensus rating and higher possible upside, analysts plainly believe New Gold has less favorable growth aspects than its competitors.

Summary

New Gold competitors beat New Gold on 11 of the 13 factors compared.

About New Gold

New Gold Inc., an intermediate gold mining company, engages in the development and operation of mineral properties. It explores for gold, silver, and copper deposits. The company's principal operating properties include 100% interests in the Rainy River gold-silver mine located in Ontario, Canada; and New Afton gold-copper mine located in British Columbia, Canada. It also holds 100% interests in the Blackwater gold-silver project located in British Columbia, Canada; and operates the Cerro San Pedro gold-silver mine in Mexico. New Gold Inc. is headquartered in Toronto, Canada.

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