Head-To-Head Analysis: AuRico Gold (AUQ) and Tahoe Resources (TAHO)

AuRico Gold (NYSE: AUQ) and Tahoe Resources (NYSE:TAHO) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Earnings & Valuation

This table compares AuRico Gold and Tahoe Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AuRico Gold N/A N/A N/A ($0.70) -4.09
Tahoe Resources $784.50 million 1.79 $117.87 million $0.32 14.00

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

Institutional and Insider Ownership

64.4% of Tahoe Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AuRico Gold and Tahoe Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AuRico Gold -53.95% -8.75% -6.19%
Tahoe Resources 12.44% 4.57% 3.87%

Analyst Recommendations

This is a summary of current recommendations for AuRico Gold and Tahoe Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AuRico Gold 0 0 0 0 N/A
Tahoe Resources 0 5 2 0 2.29

Tahoe Resources has a consensus price target of $15.00, indicating a potential upside of 234.82%. Given Tahoe Resources’ higher possible upside, analysts clearly believe Tahoe Resources is more favorable than AuRico Gold.

Summary

Tahoe Resources beats AuRico Gold on 8 of the 8 factors compared between the two stocks.

About AuRico Gold

AuRico Gold Inc (AuRico Gold), is a gold producer with mines and projects in North America. The Company’s operations include the Young-Davidson mine in Ontario, Canada and the El Chanate mine in Sonora, Mexico. The Company’s project pipeline also includes exploration and development in Canada and Mexico. The Company owns the Young-Davidson mine, located near the town of Matachewan in Northern Ontario, Canada. The property consists of mineral leases and claims totaling 4,733 hectares. The Company owns the El Chanate mine, located 37 kilometers northeast of the town of Caborca in the state of Sonora, Mexico. El Chanate consists of an open pit mine with heap leach processing facilities. The Company’s Kemess Underground project is a gold and copper project located in north-central British Columbia, Canada, approximately 430 kilometers northwest of Prince George. The Company also has interest in Las Lajas Project and Santa Fe Project.

About Tahoe Resources

Tahoe Resources Inc. is a mine operations, and mineral exploration and development company. The Company’s principal business activities are the exploration, development, operation and acquisition of mineral properties for the mining of precious metals in the Americas. Its business involves operating the Escobal mine, a silver mining operation located in southeastern Guatemala, the La Arena and Shahuindo mines, gold mining operations located in northwestern Peru, and the Bell Creek mine and mill and the Timmins West mine, gold mining operations located in northeastern Ontario, Canada. Its additional business objectives include the expansion of gold production at the Shahuindo and Bell Creek mines, the development of the Whitney Project and the ongoing exploration programs in Peru and Canada. It focuses on the initial evaluation of exploration/development projects with the main projects being the La Arena copper-gold sulfide project in Peru and the Fenn-Gib gold project in Canada.

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