Gold resource (NYSE: GORO – Get a rating) and Sandstorm Gold (NYSE: SAND – Get a rating) are both small-cap commodity companies, but which stock is superior? We’ll compare the two companies based on their risk strength, analyst recommendations, dividends, earnings, profitability, valuation, and institutional ownership.
Institutional and Insider Ownership
28.6% of Gold Resource shares are held by institutional investors. By comparison, 40.3% of Sandstorm Gold shares are held by institutional investors. 1.1% of Gold Resource shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.
This is a breakdown of the current recommendations and price targets for Gold Resource and Sandstorm Gold, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|gold resource||0||0||0||0||N / A|
Sandstorm Gold has a consensus price target of $11.69, suggesting a potential upside of 114.45%. Given the higher possible upside of Sandstorm Gold, analysts clearly believe that Sandstorm Gold is more favorable than Gold Resource.
This table compares the net margins, return on equity and return on assets of Gold Resource and Sandstorm Gold.
|Net margins||Return on equity||return on assets|
Volatility and risk
Gold Resource has a beta of 1.63, meaning its stock price is 63% more volatile than the S&P 500. Comparatively, Sandstorm Gold has a beta of 1.04, meaning its stock price is 4% more volatile than the S&P 500.
Gold Resource pays an annual dividend of $0.04 per share and has a dividend yield of 2.6%. Sandstorm Gold pays an annual dividend of $0.06 per share and has a dividend yield of 1.1%. Gold Resource pays 33.3% of its earnings as a dividend. Sandstorm Gold pays 37.5% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Gold Resource has increased its dividend for 1 consecutive year. Gold Resource is clearly the better dividend stock, given its higher yield and longer history of dividend growth.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Gold Resource and Sandstorm Gold.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|gold resource||$125.20 million||1.09||$8.03 million||$0.12||12.83|
|gold sandstorm||$71.72 million||14.61||$27.62 million||$0.16||34.06|
Sandstorm Gold has lower earnings, but higher earnings than Gold Resource. Gold Resource trades at a lower price-to-earnings ratio than Sandstorm Gold, indicating that it is currently the more affordable of the two stocks.
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 is also exploring copper, lead and zinc deposits. Its principal asset is the 100% owned Back Forty Project covering approximately 1,304 hectares located in Menominee County, Michigan. The company was founded in 1998 and is based in Denver, Colorado.
About Sandstorm Gold
Sandstorm Gold Ltd. operates as a gold royalty company. The Company is focused on acquiring royalties and contracts to purchase gold and other metals (streams) from companies that have late-stage development projects or operating mines. It offers upfront payments to companies to acquire a stream or royalty and receives the right to purchase a percentage of a mine’s production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. The company has a portfolio of 230 streams and royalties. It mainly operates in Canada, Mexico, United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Ivory Coast, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guyana. , Turkey, Sweden, Fiji and Australia. The company was previously known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.
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