Comparing First Colombia Gold (OTCMKTS:FCGD) & Gold Resource (NYSE:GORO)

First Colombia Gold (OTCMKTS:FCGD) and Gold Resource (NYSE:GORO) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Insider & Institutional Ownership

18.4% of Gold Resource shares are owned by institutional investors. 0.0% of First Colombia Gold shares are owned by company insiders. Comparatively, 1.3% of Gold Resource shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

First Colombia Gold has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Gold Resource has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for First Colombia Gold and Gold Resource, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Colombia Gold	0	0	0	0	0.00
Gold Resource	0	0	1	0	3.00

Gold Resource has a consensus price target of $1.25, suggesting a potential upside of 98.41%. Given Gold Resource’s stronger consensus rating and higher possible upside, analysts plainly believe Gold Resource is more favorable than First Colombia Gold.

Profitability

This table compares First Colombia Gold and Gold Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Colombia Gold	N/A	N/A	N/A
Gold Resource	-61.31%	-35.25%	-16.15%

Valuation & Earnings

This table compares First Colombia Gold and Gold Resource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Colombia Gold	N/A	N/A	N/A	N/A	N/A
Gold Resource	$65.73 million	1.31	-$16.02 million	($0.63)	-1.00

First Colombia Gold has higher earnings, but lower revenue than Gold Resource.

Summary

Gold Resource beats First Colombia Gold on 7 of the 10 factors compared between the two stocks.

About First Colombia Gold

First Colombia Gold Corp. engages in the exploration and production of oil and gas properties. The company operates through Energy and Mining divisions. It holds interests in 96 oil wells with a gross acreage of 4,302 acres in the counties of Cumberland, Monroe, Overton, and Clinton. The company is also involved in the precious minerals exploration business. It owns 2 unpatented mining claims in the Skip Silver prospect covering an area of approximately 40 acres in central Montana. The company was formerly known as Amazon Goldsands Ltd. and changed its name to First Colombia Gold Corp. in November 2010. First Colombia Gold Corp. was founded in 1997 and is based in Nashville, Tennessee.

About Gold Resource

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.