Paramount Gold Nevada Corp (NYSE: PZG) and Goldcorp (NYSE:GG) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Paramount Gold Nevada Corp N/A N/A N/A
Goldcorp 13.22% 3.43% 2.15%

Insider and Institutional Ownership

54.0% of Goldcorp shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Paramount Gold Nevada Corp does not pay a dividend. Goldcorp pays out 14.5% of its earnings in the form of a dividend. Goldcorp has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Paramount Gold Nevada Corp and Goldcorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Gold Nevada Corp 0 0 2 0 3.00
Goldcorp 0 9 8 0 2.47

Paramount Gold Nevada Corp currently has a consensus price target of $2.88, indicating a potential upside of 111.40%. Goldcorp has a consensus price target of $16.66, indicating a potential upside of 25.63%. Given Paramount Gold Nevada Corp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Paramount Gold Nevada Corp is more favorable than Goldcorp.

Valuation and Earnings

This table compares Paramount Gold Nevada Corp and Goldcorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Paramount Gold Nevada Corp N/A N/A -$7.57 million N/A N/A
Goldcorp $3.52 billion 3.30 $1.33 billion $0.55 24.11

Goldcorp has higher revenue and earnings than Paramount Gold Nevada Corp.

Summary

Goldcorp beats Paramount Gold Nevada Corp on 9 of the 12 factors compared between the two stocks.

Paramount Gold Nevada Corp Company Profile

Paramount Gold Nevada Corp. is an exploration-stage mining company. The Company is engaged in the business of acquiring, exploring and developing precious metal projects in the United States. Its principal Nevada interest, the Sleeper Gold Project, is located in Humboldt County, Nevada. Its project located in Oregon, known as the Grassy Mountain Project, is situated in Malheur County, Oregon. As of June 30, 2016, the Company owned additional mining claims in the State of Nevada, including the Mill Creek property, which had 36 unpatented lode mining claims in Lander County, and the Spring Valley property, which had 38 lode mining claims in Pershing County. Its subsidiaries, New Sleeper Gold LLC and Sleeper Mining Company, LLC, operate its mining interests in Nevada. Its subsidiaries, Calico Resources Corp. and Calico Resources USA Corp., hold its interest in the Grassy Mountain Project in Oregon. As of June 30, 2016, the Company had not generated any revenues from operations.

Goldcorp Company Profile

Goldcorp Inc. is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company is engaged in the sale of gold, silver, lead, zinc and copper. The Company’s segments include Red Lake Gold Mines Ontario Partnership (Red Lake), Goldcorp Canada Ltd./Goldcorp Inc. (Porcupine), Musselwhite, Les Mines Opinaca Ltee (Eleonore), Minera Penasquito S.A. de C.V. and Camino Rojo S.A. de C.V. (Penasquito), Desarrollos Mineros San Luis S.A. de C.V. (Los Filos), Montana Exploradora de Guatemala S.A. (Marlin), Oroplata S.A. (Cerro Negro), Corredor SpA (Project Corridor), Minera Alumbrera Limited (Alumbrera), El Morro and Pueblo Viejo Dominicana Corporation (Pueblo Viejo). The Company’s principal product is gold dore with the refined gold bullion sold primarily in the London spot market.

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