Analyzing Jaguar Mining (OTCMKTS:JAGGF) & Eldorado Gold (NYSE:EGO)

Jaguar Mining (OTCMKTS:JAGGF) and Eldorado Gold (NYSE:EGO) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Profitability

This table compares Jaguar Mining and Eldorado Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	-10.83%	3.72%	2.55%
Eldorado Gold	27.89%	8.63%	5.57%

Valuation and Earnings

This table compares Jaguar Mining and Eldorado Gold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$158.63 million	2.74	-$1.29 million	($0.19)	-26.79
Eldorado Gold	$1.82 billion	3.76	$507.26 million	$2.48	13.87

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

Volatility and Risk

Jaguar Mining has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Eldorado Gold has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Jaguar Mining and Eldorado Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
Eldorado Gold	1	5	3	1	2.40

Eldorado Gold has a consensus target price of $43.71, suggesting a potential upside of 27.08%. Given Eldorado Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Eldorado Gold is more favorable than Jaguar Mining.

Insider and Institutional Ownership

69.6% of Eldorado Gold shares are held by institutional investors. 0.6% of Jaguar Mining shares are held by insiders. Comparatively, 0.6% of Eldorado Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Eldorado Gold beats Jaguar Mining on 13 of the 14 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.