Analyzing Gold Resource (NYSE:GORO) & Osisko Development (NYSE:ODV)

Gold Resource (NYSE:GORO) and Osisko Development (NYSE:ODV) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Risk & Volatility

Gold Resource has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gold Resource	-61.31%	-35.25%	-16.15%
Osisko Development	-1,817.64%	-11.51%	-8.41%

Valuation and Earnings

This table compares Gold Resource and Osisko Development”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Resource	$73.90 million	0.50	-$16.02 million	($0.49)	-0.80
Osisko Development	$23.43 million	8.31	-$134.73 million	($1.81)	-0.79

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Gold Resource and Osisko Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Resource	0	0	1	0	3.00
Osisko Development	0	0	0	0	0.00

Gold Resource currently has a consensus price target of $1.75, suggesting a potential upside of 348.26%. Given Gold Resource’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gold Resource is more favorable than Osisko Development.

Insider & Institutional Ownership

18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 15.2% of Osisko Development shares are owned by institutional investors. 2.5% of Gold Resource shares are owned by insiders. Comparatively, 0.9% of Osisko Development shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Gold Resource beats Osisko Development on 10 of the 14 factors compared between 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 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.

About Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.