Financial Comparison: Blue Gem Enterprise (OTCMKTS:BGEM) and New Gold (NYSE:NGD)

New Gold (NYSE:NGD) and Blue Gem Enterprise (OTCMKTS:BGEM) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares New Gold and Blue Gem Enterprise”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Gold	$924.50 million	3.29	-$64.50 million	$0.17	22.59
Blue Gem Enterprise	N/A	N/A	N/A	N/A	N/A

Blue Gem Enterprise has lower revenue, but higher earnings than New Gold.

Institutional and Insider Ownership

42.8% of New Gold shares are held by institutional investors. 0.2% of New Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for New Gold and Blue Gem Enterprise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Gold	0	2	6	2	3.00
Blue Gem Enterprise	0	0	0	0	0.00

New Gold presently has a consensus target price of $3.85, indicating a potential upside of 0.26%. Given New Gold’s stronger consensus rating and higher possible upside, equities research analysts clearly believe New Gold is more favorable than Blue Gem Enterprise.

Profitability

This table compares New Gold and Blue Gem Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Gold	11.10%	13.70%	6.31%
Blue Gem Enterprise	N/A	N/A	N/A

Summary

New Gold beats Blue Gem Enterprise on 10 of the 10 factors compared between the two stocks.

About New Gold

New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.

About Blue Gem Enterprise

Blue Gem Enterprise, Inc., through its subsidiaries, engages in full service direct store beverage distribution activities in Florida, the United States. The company manages and distributes select allied brands, including the Title Sports Drink for food and beverage manufacturers pursuant to exclusive agreements with manufacturers. It distributes various non-alcohol beverages, such as ice teas, juices, nutritional shakes, energy shots, and sports drinks, as well as food products. The company also distributes refrigerated dairy products, fresh produce, and food and beverages, including milk; fruits, such as watermelon; nut and snack bars under the Wings of Nature Bars brand name; Apple Rush, an apple flavored fruit beverage; Xingtea, a tea beverage; and Myoplex, a shake. It serves independent retail stores and chain stores. Blue Gem Enterprise, Inc. is based in Opa-locka, Florida.