Eldorado Gold Corporation (NYSE: EGO) and Sandstorm Gold (NASDAQ:SAND) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Eldorado Gold Corporation and Sandstorm Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eldorado Gold Corporation 1.00% 1.41% 1.04%
Sandstorm Gold N/A N/A N/A

Valuation and Earnings

This table compares Eldorado Gold Corporation and Sandstorm Gold’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eldorado Gold Corporation $425.59 million 3.65 $143.89 million $0.01 217.22
Sandstorm Gold $68.17 million 11.91 $43.87 million N/A N/A

Eldorado Gold Corporation has higher revenue and earnings than Sandstorm Gold.

Institutional & Insider Ownership

55.1% of Eldorado Gold Corporation shares are owned by institutional investors. 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.

Analyst Recommendations

This is a summary of recent recommendations for Eldorado Gold Corporation and Sandstorm Gold, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Gold Corporation 2 5 1 0 1.88
Sandstorm Gold 0 1 3 0 2.75

Eldorado Gold Corporation presently has a consensus target price of $3.90, suggesting a potential upside of 79.72%. Sandstorm Gold has a consensus target price of $6.00, suggesting a potential upside of 36.36%. Given Eldorado Gold Corporation’s higher probable upside, equities analysts clearly believe Eldorado Gold Corporation is more favorable than Sandstorm Gold.

Summary

Eldorado Gold Corporation beats Sandstorm Gold on 7 of the 11 factors compared between the two stocks.

Eldorado Gold Corporation Company Profile

Eldorado Gold Corporation (Eldorado) is a gold exploration, development and mining company. The Company’s geographical segments include Turkey, Brazil, Greece, Romania and Other. The Turkey segment includes the Kisladag and the Efemcukuru mines and exploration activities in Turkey. The Brazil segment includes the Vila Nova mine, Tocantinzinho project and exploration activities in Brazil. The Greece segment includes the Stratoni mine, the Olympias, Skouries, Perama Hill and Sapes projects, and exploration activities in Greece. The Romania segment includes the Certej project and exploration activities in Romania. Other segment includes operations of the Company’s corporate office and exploration activities in other countries. The Company has operations and ongoing exploration and development projects in Turkey, Greece, Brazil and Romania. Its Operating gold mines include Kisladag in Turkey, and Efemcukuru in Turkey.

Sandstorm Gold Company Profile

Sandstorm Gold Ltd is a Canada-based company engaged in providing financing to mining companies. The Company focuses on acquiring gold and other metal purchase agreements (Gold Streams or Silver Streams), and royalties from companies that have advanced stage development projects or operating mines. The Company operates in the segments of Bachelor Lake, Black Fox, Chapada Santa Elena, Yamana Silver Stream, Chapada, Diavik Mine, Other Royalties, Other and Corporate. The Company has acquired a portfolio of approximately 140 streams and royalties, of which approximately 20 of the underlying mines are producing. The Company’s projects include Yamana Silver Stream; Cerro Moro, which is located approximately 70 kilometers southwest of the coastal port city of Puerto Deseado; Chapada Mine, which is located 270 kilometers northwest of Brasilia in Goias state, Brazil; Black Fox Mine; Santa Elena Mine; Bachelor Lake Mine; Karma Mine; Ming Mine, Bracemac-McLeod Mine and Aurizona Mine.

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