Financial Review: Centerra Gold (NYSE:CGAU) vs. Mexus Gold US (OTCMKTS:MXSG)

Mexus Gold US (OTCMKTS:MXSGGet Rating) and Centerra Gold (NYSE:CGAUGet 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 profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

37.8% of Centerra Gold shares are held by institutional investors. 8.6% of Mexus Gold US shares are held by insiders. Comparatively, 0.2% of Centerra Gold shares are held 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.

Profitability

This table compares Mexus Gold US and Centerra Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mexus Gold US N/A N/A -137.93%
Centerra Gold 36.71% 1.92% 1.52%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Mexus Gold US and Centerra Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mexus Gold US 0 0 0 0 N/A
Centerra Gold 0 2 2 0 2.50

Centerra Gold has a consensus target price of $9.25, indicating a potential upside of 71.30%. Given Centerra Gold’s higher possible upside, analysts clearly believe Centerra Gold is more favorable than Mexus Gold US.

Volatility and Risk

Mexus Gold US has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Centerra Gold has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Mexus Gold US and Centerra Gold’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mexus Gold US N/A N/A -$2.58 million N/A N/A
Centerra Gold $900.14 million 1.32 -$381.77 million $1.07 5.05

Mexus Gold US has higher earnings, but lower revenue than Centerra Gold.

Summary

Centerra Gold beats Mexus Gold US on 7 of the 10 factors compared between the two stocks.

About Mexus Gold US

(Get Rating)

Mexus Gold US, an exploration stage mining company, engages in the evaluation, acquisition, exploration, and advancement of gold, silver, copper, and other precious metal projects in the State of Sonora, Mexico. It holds interests in the Santa Elena prospect comprising seven concessions covering an area of 898.028 hectares located to the northwest of the city of Caborca, Sonora State, as well as the Mabel Property covering an area of 2,128 hectares located to the southwest of Nogales, Sonora State. The company was formerly known as Action Fashions, Ltd. and changed its name to Mexus Gold US in September 2009. Mexus Gold US was incorporated in 1990 and is based in Carson City, Nevada.

About Centerra Gold

(Get Rating)

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects include the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt Gold Mine located in Turkey. The company was incorporated in 2002 and is headquartered in Toronto, Canada.

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