Comparing Goldcorp (GG) & Eldorado Gold (EGO)

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Eldorado Gold (NYSE:EGO) and Goldcorp (NYSE:GG) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

41.6% of Eldorado Gold shares are owned by institutional investors. Comparatively, 55.1% of Goldcorp shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Eldorado Gold and Goldcorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Gold $459.00 million 1.57 -$361.90 million ($0.17) -26.65
Goldcorp $3.03 billion 3.12 -$4.15 billion $0.07 155.86

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Eldorado Gold and Goldcorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Gold 3 5 2 0 1.90
Goldcorp 0 9 8 0 2.47

Eldorado Gold currently has a consensus price target of $2.05, suggesting a potential downside of 54.71%. Goldcorp has a consensus price target of $13.33, suggesting a potential upside of 22.17%. Given Goldcorp’s stronger consensus rating and higher possible upside, analysts plainly believe Goldcorp is more favorable than Eldorado Gold.

Risk & Volatility

Eldorado Gold has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Goldcorp has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Eldorado Gold -78.86% -0.47% -0.34%
Goldcorp -136.84% 0.86% 0.55%

Dividends

Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Eldorado Gold does not pay a dividend. Goldcorp pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Goldcorp beats Eldorado Gold on 11 of the 15 factors compared between the two stocks.

Eldorado Gold Company Profile

Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, and mining of gold properties in Turkey, Greece, Brazil, Serbia, Canada, and Romania. The company holds 100% interests in the Kisladag and Efemcukuru gold mines in Turkey; Lamaque gold project in Canada; Perama Hill gold-silver project and Sapes in Greece; and Vila Nova iron ore mine and Tocantinzinho gold project in Brazil. It also holds 95% interests in Olympias gold mine, Stratoni silver-lead-zinc mine, and Skouries gold-copper project in Greece; and 80.5% interests in Certej gold-silver project 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 founded in 1992 and is headquartered in Vancouver, Canada.

Goldcorp Company Profile

Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, zinc, silver, lead, and copper deposits. Its principal producing mining properties include the Éléonore, Musselwhite, Porcupine, and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine in the Dominican Republic. The company was founded in 1954 and is headquartered in Vancouver, Canada.

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