New Found Gold (NYSE:NFGC) & Aris Mining (NYSE:ARMN) Financial Analysis

Aris Mining (NYSE:ARMN) and New Found Gold (NYSE:NFGC) 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 institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Valuation & Earnings

This table compares Aris Mining and New Found Gold’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$447.67 million	1.16	$11.42 million	$0.02	184.00
New Found Gold	N/A	N/A	-$59.18 million	($0.33)	-11.00

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

Insider and Institutional Ownership

35.8% of Aris Mining shares are owned by institutional investors. Comparatively, 3.4% of New Found Gold 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Aris Mining and New Found Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	0	0	0	0	N/A
New Found Gold	0	0	2	0	3.00

New Found Gold has a consensus price target of $9.00, indicating a potential upside of 147.93%. Given New Found Gold’s higher possible upside, analysts plainly believe New Found Gold is more favorable than Aris Mining.

Profitability

This table compares Aris Mining and New Found Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aris Mining	2.09%	8.73%	4.05%
New Found Gold	N/A	-135.56%	-105.99%

Summary

Aris Mining beats New Found Gold on 8 of the 10 factors compared between the two stocks.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, Canada.

About New Found Gold

New Found Gold Corp., a mineral exploration company, engages in the identification, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. The company primarily explores for gold deposit. It holds 100% interests in the Queensway project that includes 94 mineral licenses and 6,649 claims covering an area of 166,225 hectares of land located near Gander, Newfoundland; and the Lucky Strike project comprising 11,684 hectares located in Kirkland Lake, Ontario. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.