Contrasting Jaguar Mining (OTCMKTS:JAGGF) and Eldorado Gold (NYSE:EGO)

Eldorado Gold (NYSE:EGO) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Profitability

This table compares Eldorado Gold and Jaguar Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eldorado Gold	27.89%	8.63%	5.57%
Jaguar Mining	-10.83%	3.72%	2.55%

Valuation and Earnings

This table compares Eldorado Gold and Jaguar Mining”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eldorado Gold	$1.82 billion	3.68	$507.26 million	$2.48	13.60
Jaguar Mining	$158.63 million	2.63	-$1.29 million	($0.19)	-25.68

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

Volatility & Risk

Eldorado Gold has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Insider and Institutional Ownership

69.6% of Eldorado Gold shares are held by institutional investors. 0.6% of Eldorado Gold shares are held by insiders. Comparatively, 0.6% of Jaguar Mining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Eldorado Gold and Jaguar Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eldorado Gold	1	5	3	1	2.40
Jaguar Mining	0	0	0	0	0.00

Eldorado Gold currently has a consensus target price of $43.71, indicating a potential upside of 29.62%. Given Eldorado Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Eldorado Gold is more favorable than Jaguar Mining.

Summary

Eldorado Gold beats Jaguar Mining on 13 of the 14 factors compared between the two stocks.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.