New Found Gold (NYSE:NFGC – Get Free Report) and Aris Mining (NYSE:ARMN – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for New Found Gold and Aris Mining, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 0 | 2 | 0 | 3.00 |
| Aris Mining | 0 | 0 | 0 | 0 | N/A |
New Found Gold currently has a consensus target price of $9.00, suggesting a potential upside of 147.93%. Given New Found Gold’s higher possible upside, analysts clearly believe New Found Gold is more favorable than Aris Mining.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.33) | -11.00 |
| Aris Mining | $447.67 million | 1.16 | $11.42 million | $0.02 | 184.00 |
Aris Mining has higher revenue and earnings than New Found Gold. New Found Gold is trading at a lower price-to-earnings ratio than Aris Mining, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares New Found Gold and Aris Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Found Gold | N/A | -135.56% | -105.99% |
| Aris Mining | 2.09% | 8.73% | 4.05% |
Institutional & Insider Ownership
3.4% of New Found Gold shares are held by institutional investors. Comparatively, 35.8% of Aris Mining shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Aris Mining beats New Found Gold on 8 of the 10 factors compared between the two stocks.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. The company primarily explores for gold deposit. It holds 100% interests in the Queensway project that includes 94 mineral licenses and 6,649 claims covering an area of 166,225 hectares of land located near Gander, Newfoundland; and the Lucky Strike project comprising 11,684 hectares located in Kirkland Lake, Ontario. 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 Aris Mining
Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, Canada.
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