Head-To-Head Contrast: Gold Resource (NYSE:GORO) vs. Centerra Gold (NYSE:CGAU)

Centerra Gold (NYSE:CGAU) and Gold Resource (NYSE:GORO) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Centerra Gold	8.31%	10.34%	7.70%
Gold Resource	-61.31%	-35.25%	-16.15%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerra Gold	0	2	2	0	2.50
Gold Resource	0	0	1	0	3.00

Centerra Gold currently has a consensus target price of $11.00, suggesting a potential upside of 89.98%. Gold Resource has a consensus target price of $1.75, suggesting a potential upside of 636.84%. Given Gold Resource’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Resource is more favorable than Centerra Gold.

Risk and Volatility

Centerra Gold has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Institutional & Insider Ownership

55.4% of Centerra Gold shares are owned by institutional investors. Comparatively, 18.4% of Gold Resource shares are owned by institutional investors. 0.2% of Centerra Gold shares are owned by company insiders. Comparatively, 2.5% of Gold Resource shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Centerra Gold and Gold Resource”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerra Gold	$1.25 billion	0.97	-$81.28 million	$0.48	12.06
Gold Resource	$97.73 million	0.23	-$16.02 million	($0.49)	-0.48

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

Summary

Centerra Gold beats Gold Resource on 9 of the 14 factors compared between the two stocks.

About Centerra Gold

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey. The company was incorporated in 2002 and is based in Toronto, Canada.

About Gold Resource

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.