New Found Gold (NYSE:NFGC – Get Free Report) and Namib Minerals (NASDAQ:NAMM – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of recent recommendations for New Found Gold and Namib Minerals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 0 | 1 | 0 | 3.00 |
| Namib Minerals | 1 | 0 | 0 | 0 | 1.00 |
New Found Gold presently has a consensus price target of $5.00, suggesting a potential upside of 157.73%. Given New Found Gold’s stronger consensus rating and higher probable upside, equities research analysts clearly believe New Found Gold is more favorable than Namib Minerals.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| New Found Gold | N/A | -82.80% | -68.88% |
| Namib Minerals | N/A | N/A | -56.66% |
Institutional & Insider Ownership
3.4% of New Found Gold shares are held by institutional investors. Comparatively, 59.5% of Namib Minerals shares are held by institutional investors. 30.5% of Namib Minerals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares New Found Gold and Namib Minerals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.19) | -10.21 |
| Namib Minerals | N/A | N/A | -$20.75 million | ($1.27) | -1.18 |
New Found Gold is trading at a lower price-to-earnings ratio than Namib Minerals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
New Found Gold has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Namib Minerals has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.
About Namib Minerals
Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.
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