New Found Gold (NYSE:NFGC – Get Free Report) and Namib Minerals (NASDAQ:NAMM – Get Free Report) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Profitability
This table compares New Found Gold and Namib Minerals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Found Gold | N/A | -82.80% | -68.88% |
| Namib Minerals | N/A | N/A | -56.66% |
Analyst Recommendations
This is a summary of current ratings for New Found Gold and Namib Minerals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 0 | 1 | 0 | 3.00 |
| Namib Minerals | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares New Found Gold and Namib Minerals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.19) | -10.89 |
| Namib Minerals | N/A | N/A | -$20.75 million | ($1.27) | -1.47 |
New Found Gold is trading at a lower price-to-earnings ratio than Namib Minerals, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
3.4% of New Found Gold shares are owned by institutional investors. Comparatively, 59.5% of Namib Minerals shares are owned by institutional investors. 30.5% of Namib Minerals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
New Found Gold has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Namib Minerals has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500.
Summary
Namib Minerals beats New Found Gold on 6 of the 11 factors compared between the two stocks.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. 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 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.
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