Analyzing New Found Gold (NYSE:NFGC) and B2Gold (NYSE:BTG)

New Found Gold (NYSE:NFGC) and B2Gold (NYSE:BTG) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for New Found Gold and B2Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Found Gold	0	0	1	0	3.00
B2Gold	0	5	1	0	2.17

New Found Gold presently has a consensus price target of $9.00, suggesting a potential upside of 383.87%. B2Gold has a consensus price target of $4.12, suggesting a potential upside of 58.94%. Given New Found Gold’s stronger consensus rating and higher possible upside, equities research analysts clearly believe New Found Gold is more favorable than B2Gold.

Institutional & Insider Ownership

3.4% of New Found Gold shares are owned by institutional investors. Comparatively, 61.4% of B2Gold shares are owned by institutional investors. 1.2% of B2Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

New Found Gold has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, B2Gold has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares New Found Gold and B2Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Found Gold	N/A	N/A	-$59.18 million	($0.22)	-8.45
B2Gold	$1.91 billion	1.78	$10.10 million	($0.56)	-4.63

B2Gold has higher revenue and earnings than New Found Gold. New Found Gold is trading at a lower price-to-earnings ratio than B2Gold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares New Found Gold and B2Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Found Gold	N/A	-82.80%	-68.88%
B2Gold	-38.42%	7.53%	5.56%

Summary

B2Gold beats New Found Gold on 8 of the 12 factors compared between the two stocks.

About New Found Gold

New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.

About B2Gold

B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.