Head-To-Head Analysis: Namib Minerals (NASDAQ:NAMM) and Gold Resource (NYSE:GORO)

Namib Minerals (NASDAQ:NAMM) and Gold Resource (NYSE:GORO) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

Namib Minerals has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, Gold Resource has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Insider and Institutional Ownership

59.5% of Namib Minerals shares are owned by institutional investors. Comparatively, 18.4% of Gold Resource shares are owned by institutional investors. 30.5% of Namib Minerals 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Namib Minerals	N/A	N/A	-42.57%
Gold Resource	-61.31%	-35.25%	-16.15%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Namib Minerals and Gold Resource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Namib Minerals	0	0	0	0	0.00
Gold Resource	0	0	1	0	3.00

Gold Resource has a consensus target price of $1.50, indicating a potential upside of 78.57%. Given Gold Resource’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Resource is more favorable than Namib Minerals.

Earnings & Valuation

This table compares Namib Minerals and Gold Resource”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Namib Minerals	N/A	N/A	-$20.75 million	($1.27)	-2.53
Gold Resource	$49.82 million	2.30	-$16.02 million	($0.42)	-2.00

Gold Resource has higher revenue and earnings than Namib Minerals. Namib Minerals is trading at a lower price-to-earnings ratio than Gold Resource, indicating that it is currently the more affordable of the two stocks.

Summary

Gold Resource beats Namib Minerals on 9 of the 13 factors compared between the two stocks.

About Namib Minerals

Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.

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.