Seabridge Gold (NYSE: SA) and Turquoise Hill Resources (NYSE:TRQ) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

25.9% of Seabridge Gold shares are held by institutional investors. Comparatively, 32.9% of Turquoise Hill Resources shares are held by institutional investors. 12.8% of Seabridge Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Seabridge Gold and Turquoise Hill Resources’ top-line revenue, earnings per share (EPS) 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) -158.75
Turquoise Hill Resources $892.02 million 7.38 $159.41 million $0.06 54.51

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

Profitability

This table compares Seabridge Gold and Turquoise Hill Resources’ 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%
Turquoise Hill Resources 14.20% 1.60% 1.01%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Seabridge Gold and Turquoise Hill Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seabridge Gold 0 0 0 0 N/A
Turquoise Hill Resources 0 3 3 0 2.50

Turquoise Hill Resources has a consensus target price of $5.00, suggesting a potential upside of 52.91%. Given Turquoise Hill Resources’ higher possible upside, analysts clearly believe Turquoise Hill Resources is more favorable than Seabridge Gold.

Volatility and Risk

Seabridge Gold has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500. Comparatively, Turquoise Hill Resources has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Summary

Turquoise Hill Resources beats Seabridge Gold on 10 of the 11 factors compared between the two stocks.

Seabridge Gold Company Profile

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.

Turquoise Hill Resources Company Profile

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

Receive News & Ratings for Seabridge Gold Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Seabridge Gold Inc. and related companies with MarketBeat.com's FREE daily email newsletter.