Tanzanian Gold (NYSE:TRX) vs. DRDGOLD (NYSE:DRD) Head to Head Comparison

DRDGOLD (NYSE:DRDGet Rating) and Tanzanian Gold (NYSE:TRXGet Rating) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DRDGOLD and Tanzanian Gold, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DRDGOLD 0 0 1 0 3.00
Tanzanian Gold 0 0 0 0 N/A

DRDGOLD currently has a consensus price target of $18.25, indicating a potential upside of 128.13%. Given DRDGOLD’s higher probable upside, research analysts clearly believe DRDGOLD is more favorable than Tanzanian Gold.

Volatility and Risk

DRDGOLD has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Tanzanian Gold has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

11.1% of DRDGOLD shares are held by institutional investors. Comparatively, 0.8% of Tanzanian Gold shares are held by institutional investors. 1.0% of DRDGOLD shares are held 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.

Profitability

This table compares DRDGOLD and Tanzanian Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DRDGOLD N/A N/A N/A
Tanzanian Gold N/A -16.24% -13.30%

Valuation & Earnings

This table compares DRDGOLD and Tanzanian Gold’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DRDGOLD $343.54 million 2.01 $93.88 million N/A N/A
Tanzanian Gold N/A N/A -$4.00 million ($0.03) -9.87

DRDGOLD has higher revenue and earnings than Tanzanian Gold.

Summary

DRDGOLD beats Tanzanian Gold on 9 of the 9 factors compared between the two stocks.

DRDGOLD Company Profile (Get Rating)

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. The company is involved in the exploration, extraction, processing, and smelting activities. It recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited operates as a subsidiary of Sibanye Gold Limited.

Tanzanian Gold Company Profile (Get Rating)

Tanzanian Gold Corporation engages in the acquisition, financing, exploration and development of mineral property interests in the United Republic of Tanzania. The company primarily explores for gold deposits. It holds interests in the Buckreef gold project located in north-central Tanzania. The company was formerly known as Tanzanian Royalty Exploration Corporation and changed its name to Tanzanian Gold Corporation in April 2019. Tanzanian Gold Corporation was incorporated in 1990 and is based in Toronto, Canada.

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