Goldcorp (NYSE:GG) and China Natural Resources (NASDAQ:CHNR) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Goldcorp has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, China Natural Resources has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500.
Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. China Natural Resources does not pay a dividend. Goldcorp pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings for Goldcorp and China Natural Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Natural Resources||0||0||0||0||N/A|
Goldcorp presently has a consensus price target of $12.93, indicating a potential upside of 15.54%. Given Goldcorp’s higher probable upside, equities research analysts plainly believe Goldcorp is more favorable than China Natural Resources.
Valuation & Earnings
This table compares Goldcorp and China Natural Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Goldcorp||$3.03 billion||3.21||-$4.15 billion||$0.07||159.86|
|China Natural Resources||N/A||N/A||-$900,000.00||N/A||N/A|
China Natural Resources has lower revenue, but higher earnings than Goldcorp.
This table compares Goldcorp and China Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Natural Resources||N/A||N/A||N/A|
Institutional and Insider Ownership
55.5% of Goldcorp shares are held by institutional investors. Comparatively, 0.2% of China Natural Resources shares are held by institutional investors. 23.2% of China Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Goldcorp beats China Natural Resources on 7 of the 12 factors compared between the two stocks.
Goldcorp Company Profile
Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, zinc, silver, lead, and copper deposits. Its principal producing mining properties include the Éléonore, Musselwhite, Porcupine, and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine in the Dominican Republic. The company was founded in 1954 and is headquartered in Vancouver, Canada.
China Natural Resources Company Profile
China Natural Resources, Inc., through its subsidiaries, engages in the exploration of metal properties in the People's Republic of China. The company primarily explores for lead, silver, copper, and other metal deposits. It holds interest in the Moruogu Tong mine that covers an area of 10.43 square kilometers located in Bayannaoer City, Inner Mongolia. The company is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. is a subsidiary of Feishang Group Limited.
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