Eldorado Gold Corporation (EGO) & Kinross Gold Corporation (KGC) Financial Analysis
Eldorado Gold Corporation (NYSE: EGO) and Kinross Gold Corporation (NYSE:KGC) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Institutional and Insider Ownership
55.1% of Eldorado Gold Corporation shares are owned by institutional investors. Comparatively, 59.6% of Kinross Gold Corporation shares are owned by institutional investors. 1.0% of Kinross Gold Corporation 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.
This table compares Eldorado Gold Corporation and Kinross Gold Corporation’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%|
|Kinross Gold Corporation||1.54%||3.63%||1.95%|
Earnings & Valuation
This table compares Eldorado Gold Corporation and Kinross Gold Corporation’s gross revenue, earnings per share 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|
|Kinross Gold Corporation||$3.48 billion||1.49||$1.04 billion||$0.05||83.22|
Kinross Gold Corporation has higher revenue and earnings than Eldorado Gold Corporation. Kinross Gold Corporation is trading at a lower price-to-earnings ratio than Eldorado Gold Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Eldorado Gold Corporation and Kinross Gold Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eldorado Gold Corporation||1||6||1||0||2.00|
|Kinross Gold Corporation||0||6||6||0||2.50|
Eldorado Gold Corporation presently has a consensus target price of $3.90, indicating a potential upside of 79.72%. Kinross Gold Corporation has a consensus target price of $5.19, indicating a potential upside of 24.78%. Given Eldorado Gold Corporation’s higher probable upside, equities analysts clearly believe Eldorado Gold Corporation is more favorable than Kinross Gold Corporation.
Risk & Volatility
Eldorado Gold Corporation has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Kinross Gold Corporation has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.
Kinross Gold Corporation beats Eldorado Gold Corporation on 11 of the 14 factors compared between the two stocks.
About Eldorado Gold Corporation
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.
About Kinross Gold Corporation
Kinross Gold Corporation is a gold mining company. The Company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties. The Company’s segments include Fort Knox, Round Mountain, Bald Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Maricunga, Tasiast and Chirano. Fort Knox is an open-pit gold mine located in Fairbanks, Alaska. Round Mountain open-pit mine is located in Nye County, Nevada. Bald Mountain open-pit mine is located in Nevada. Kettle River-Buckhorn mine is located in northern Washington State. The Kupol segment includes the Kupol and Dvoinoye mines. Paracatu is a gold mine located in the State of Minas Gerais, Brazil. Maricunga open pit mine is located in Copiapo, Chile. Tasiast mine is located in north-western Mauritania. Chirano is located in southwestern Ghana.
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