A-Mark Precious Metals (NASDAQ: AMRK) and New Gold (NYSE:NGD) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitabiliy.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. New Gold does not pay a dividend. A-Mark Precious Metals pays out 33.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares A-Mark Precious Metals and New Gold’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
A-Mark Precious Metals $7.40 billion 0.01 $10.53 million $0.97 15.22
New Gold $698.80 million 2.47 $287.90 million N/A N/A

New Gold has higher revenue, but lower earnings than A-Mark Precious Metals.

Profitability

This table compares A-Mark Precious Metals and New Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A-Mark Precious Metals 0.09% 10.08% 1.40%
New Gold 22.12% 6.89% 3.73%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for A-Mark Precious Metals and New Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A-Mark Precious Metals 0 1 1 1 3.00
New Gold 1 4 3 0 2.25

A-Mark Precious Metals presently has a consensus target price of $21.53, indicating a potential upside of 45.83%. New Gold has a consensus target price of $3.88, indicating a potential upside of 29.44%. Given A-Mark Precious Metals’ stronger consensus rating and higher probable upside, analysts plainly believe A-Mark Precious Metals is more favorable than New Gold.

Institutional & Insider Ownership

19.9% of A-Mark Precious Metals shares are held by institutional investors. 43.0% of A-Mark Precious Metals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

A-Mark Precious Metals beats New Gold on 8 of the 15 factors compared between the two stocks.

About A-Mark Precious Metals

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

About New Gold

New Gold Inc. is an intermediate gold mining company. The Company is engaged in the development and operation of mineral properties. Its segments include New Afton, Mesquite, Peak Mines, Cerro San Pedro, Corporate and Other. It has operating mines in Canada, the United States, Australia and Mexico; development projects in Canada, and a stream on gold production from a development property in Chile. Its development projects include Rainy River and Blackwater projects, which are located in Canada. Its Rainy River project is a gold project located approximately 65 kilometers northwest of Fort Frances in northwestern Ontario, Canada. The Rainy River comprises approximately 192 square kilometers of various rights and claims. The Blackwater Project is located approximately 160 kilometers southwest of the city of Prince George in central British Columbia, Canada and 110 kilometers southwest of the town of Vanderhoof. The Blackwater project covers an area of over 1,000 square kilometers.

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