Financial Analysis: NovaGold Resources (NYSE:NG) and Entrée Resources (OTCMKTS:ERLFF)

NovaGold Resources (NYSE:NGGet Rating) and Entrée Resources (OTCMKTS:ERLFFGet Rating) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for NovaGold Resources and Entrée Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NovaGold Resources 0 0 0 0 N/A
Entrée Resources 0 1 0 0 2.00

Entrée Resources has a consensus target price of $1.05, suggesting a potential upside of 15.38%. Given Entrée Resources’ higher possible upside, analysts clearly believe Entrée Resources is more favorable than NovaGold Resources.

Volatility & Risk

NovaGold Resources has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Entrée Resources has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Valuation & Earnings

This table compares NovaGold Resources and Entrée Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NovaGold Resources N/A N/A -$40.54 million ($0.13) -62.77
Entrée Resources N/A N/A -$7.55 million ($0.04) -22.75

NovaGold Resources is trading at a lower price-to-earnings ratio than Entrée Resources, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

52.5% of NovaGold Resources shares are owned by institutional investors. 3.3% of NovaGold Resources shares are owned by company 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.

Profitability

This table compares NovaGold Resources and Entrée Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NovaGold Resources N/A -51.33% -21.16%
Entrée Resources N/A N/A -98.96%

Summary

Entrée Resources beats NovaGold Resources on 6 of the 9 factors compared between the two stocks.

NovaGold Resources Company Profile (Get Rating)

NovaGold Resources Inc. explores for and develops gold mineral properties in the United States. Its principal asset is the Donlin Gold project consisting of 493 mining claims covering an area of approximately 29,008 hectares located in the Kuskokwim region of southwestern Alaska. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was incorporated in 1984 and is based in Vancouver, Canada.

Entrée Resources Company Profile (Get Rating)

Entrée Resources Ltd. operates as a mineral exploration company that focuses on the exploration, development, and acquisition of base metal projects. The firm explores for gold and copper metals. Its projects includes two separate land holdings Oyu Tolgoi mining and Entrée/Oyu Tolgoi. The company was founded by Cary Pinkowski on July 19, 1995 and is headquartered in Vancouver, Canada.

Receive News & Ratings for NovaGold Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NovaGold Resources and related companies with MarketBeat.com's FREE daily email newsletter.