Barrick Gold (NYSE:GOLD – Get Free Report) and Gold Resource (NYSE:GORO – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.
Institutional & Insider Ownership
62.9% of Barrick Gold shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 0.6% of Barrick Gold shares are held by insiders. Comparatively, 2.7% of Gold Resource shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Barrick Gold has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barrick Gold | 1 | 3 | 9 | 0 | 2.62 |
| Gold Resource | 0 | 0 | 1 | 0 | 3.00 |
Barrick Gold presently has a consensus price target of $22.20, indicating a potential upside of 19.94%. Gold Resource has a consensus price target of $1.50, indicating a potential upside of 215.79%. Given Gold Resource’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Resource is more favorable than Barrick Gold.
Earnings and Valuation
This table compares Barrick Gold and Gold Resource’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barrick Gold | $11.40 billion | 2.85 | $1.27 billion | $0.82 | 22.57 |
| Gold Resource | $97.73 million | 0.44 | -$16.02 million | ($0.21) | -2.26 |
Barrick Gold has higher revenue and earnings than Gold Resource. Gold Resource is trading at a lower price-to-earnings ratio than Barrick Gold, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Barrick Gold and Gold Resource’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barrick Gold | 12.58% | 4.88% | 3.40% |
| Gold Resource | -22.30% | -19.21% | -10.17% |
Summary
Barrick Gold beats Gold Resource on 10 of the 14 factors compared between the two stocks.
About Barrick Gold
Barrick Gold Corporation is a sector-leading gold and copper producer. Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex. Barrick owns and operates six Tier One gold mines: Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.
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.
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