Seabridge Gold (NYSE: SA) and New Gold (NYSE:NGD) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Seabridge Gold and New Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seabridge Gold 0 0 0 0 N/A
New Gold 0 5 3 0 2.38

New Gold has a consensus target price of $4.10, indicating a potential upside of 11.11%. Given New Gold’s higher probable upside, analysts plainly believe New Gold is more favorable than Seabridge Gold.

Profitability

This table compares Seabridge Gold and New Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seabridge Gold N/A -1.98% -1.83%
New Gold 12.45% 4.03% 2.24%

Earnings & Valuation

This table compares Seabridge Gold and New Gold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seabridge Gold N/A N/A -$9.54 million ($0.08) -156.25
New Gold $704.10 million 3.02 $282.10 million N/A N/A

New Gold has higher revenue and earnings than Seabridge Gold.

Institutional & Insider Ownership

25.9% of Seabridge Gold shares are owned by institutional investors. 12.8% of Seabridge Gold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

New Gold beats Seabridge Gold on 7 of the 9 factors compared between the two stocks.

About Seabridge Gold

Seabridge Gold Inc. (Seabridge) is a development-stage company. The Company is engaged in the acquisition and exploration of gold properties located in North America. As of December 31, 2016, the Company owned six properties with gold resources. Its material properties are its Kerr-Sulphurets-Mitchell (KSM) Project and its Courageous Lake Project. Its KSM Project is located within the Iskut-Stikine region of British Columbia, approximately 21 kilometers south-southeast of the former Eskay Creek Mine and approximately 65 kilometers north-northwest of Stewart, British Columbia. As of December 31, 2016, the KSM property consisted of three discontinuous claim blocks. These claim blocks are referred to as the KSM claim group; the Seabee/Tina claims, and the KSM placer claim block. As of December 31, 2016, the two claim blocks (KSM and Seabee/Tina) contained two mineral leases and 73 mineral claims, consisting of both cell and legacy claims.

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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