Taseko Mines (NYSE:TGB) versus Gold Resource (NYSE:GORO) Head-To-Head Review

Gold Resource (NYSE:GORO) and Taseko Mines (NYSE:TGB) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Gold Resource and Taseko Mines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Resource	0	0	1	0	3.00
Taseko Mines	0	0	3	1	3.25

Gold Resource currently has a consensus target price of $1.75, indicating a potential upside of 272.66%. Taseko Mines has a consensus target price of $3.50, indicating a potential upside of 68.27%. Given Gold Resource’s higher probable upside, research analysts clearly believe Gold Resource is more favorable than Taseko Mines.

Earnings and Valuation

This table compares Gold Resource and Taseko Mines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Resource	$73.90 million	0.61	-$16.02 million	($0.49)	-0.96
Taseko Mines	$608.09 million	1.04	$61.28 million	($0.03)	-69.33

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

Profitability

This table compares Gold Resource and Taseko Mines’ 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%
Taseko Mines	-2.09%	12.04%	2.89%

Volatility and Risk

Gold Resource has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Taseko Mines has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Institutional and Insider Ownership

18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 17.9% of Taseko Mines shares are owned by institutional investors. 2.5% of Gold Resource shares are owned by insiders. Comparatively, 2.3% of Taseko Mines shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Taseko Mines beats Gold Resource on 11 of the 15 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 Taseko Mines

Taseko Mines Limited, a mining company, acquires, develops, and operates mineral properties. It explores for copper, molybdenum, gold, niobium, and silver deposits. The company’s principal asset comprises 100% interest owned the Gibraltar mine located in British Columbia. It also holds interest in the Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project located in British Columbia; and the Florence copper project located in Arizona. Taseko Mines Limited was incorporated in 1966 and is headquartered in Vancouver, Canada.