Head to Head Survey: Eldorado Gold (EGO) vs. McEwen Mining (MUX)

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Eldorado Gold (NYSE:EGO) and McEwen Mining (NYSE:MUX) are both small-cap 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.

Insider and Institutional Ownership

42.4% of Eldorado Gold shares are held by institutional investors. Comparatively, 27.1% of McEwen Mining shares are held by institutional investors. 24.5% of McEwen Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Eldorado Gold and McEwen Mining’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Gold $459.00 million 1.55 -$361.88 million ($0.17) -26.35
McEwen Mining $128.82 million 3.97 -$44.87 million ($0.13) -10.92

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

Profitability

This table compares Eldorado Gold and McEwen Mining’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%
McEwen Mining -35.32% -8.53% -7.10%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Gold 2 4 2 0 2.00
McEwen Mining 0 0 2 0 3.00

Eldorado Gold currently has a consensus target price of $2.64, indicating a potential downside of 41.07%. McEwen Mining has a consensus target price of $4.00, indicating a potential upside of 181.69%. Given McEwen Mining’s stronger consensus rating and higher possible upside, analysts clearly believe McEwen Mining is more favorable than Eldorado Gold.

Dividends

McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.7%. Eldorado Gold does not pay a dividend. McEwen Mining pays out -7.7% of its earnings in the form of a dividend.

Risk & Volatility

Eldorado Gold has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, McEwen Mining has a beta of -0.72, indicating that its share price is 172% less volatile than the S&P 500.

Summary

McEwen Mining beats Eldorado Gold on 10 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 100% interest in 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.

McEwen Mining Company Profile

McEwen Mining, Inc. is a mining and minerals production and exploration company, which focuses on base metals in Argentina, Mexico and the United States. It operates through the following geographical segments: Mexico, MSC, Nevada, Los Azules, Canada and Other. The company was founded on July 24, 1979 and is headquartered in Toronto, Canada.

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