International Tower Hill Mines (NYSE:THM – Get Free Report) and New Gold (NYSE:NGD – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Volatility & Risk
International Tower Hill Mines has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, New Gold has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for International Tower Hill Mines and New Gold, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Tower Hill Mines | 0 | 0 | 0 | 0 | 0.00 |
| New Gold | 0 | 1 | 4 | 2 | 3.14 |
Institutional and Insider Ownership
54.6% of International Tower Hill Mines shares are owned by institutional investors. Comparatively, 42.8% of New Gold shares are owned by institutional investors. 2.5% of International Tower Hill Mines shares are owned by insiders. Comparatively, 0.2% of New Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares International Tower Hill Mines and New Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Tower Hill Mines | N/A | -5.82% | -5.80% |
| New Gold | 11.10% | 13.70% | 6.31% |
Earnings and Valuation
This table compares International Tower Hill Mines and New Gold”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Tower Hill Mines | N/A | N/A | -$3.40 million | ($0.01) | -84.45 |
| New Gold | $941.50 million | 4.15 | -$64.50 million | $0.17 | 29.00 |
International Tower Hill Mines has higher earnings, but lower revenue than New Gold. International Tower Hill Mines is trading at a lower price-to-earnings ratio than New Gold, indicating that it is currently the more affordable of the two stocks.
Summary
New Gold beats International Tower Hill Mines on 11 of the 14 factors compared between the two stocks.
About International Tower Hill Mines
International Tower Hill Mines Ltd. is a Canada-based resource exploration company possessing a portfolio of Alaskan and Nevada based gold and base metal exploration projects. The Company is currently focused on the Livengood Gold Project located in the north of Fairbanks, Alaska. International Tower Hill Mines Ltd. is headquartered in Vancouver, Canada.
About New Gold
New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.
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