NexMetals Mining (NASDAQ:NEXM – Get Free Report) and New Gold (NYSE:NGD – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Profitability
This table compares NexMetals Mining and New Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexMetals Mining | N/A | -228.97% | -141.60% |
| New Gold | 11.10% | 13.70% | 6.31% |
Institutional & Insider Ownership
42.8% of New Gold shares are held by institutional investors. 0.2% of New Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexMetals Mining | N/A | N/A | -$30.96 million | ($1.05) | -3.36 |
| New Gold | $1.24 billion | 5.62 | -$64.50 million | $0.32 | 27.56 |
NexMetals Mining has higher earnings, but lower revenue than New Gold. NexMetals Mining is trading at a lower price-to-earnings ratio than New Gold, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for NexMetals Mining and New Gold, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexMetals Mining | 1 | 1 | 0 | 0 | 1.50 |
| New Gold | 0 | 1 | 5 | 1 | 3.00 |
New Gold has a consensus target price of $7.38, indicating a potential downside of 16.29%. Given New Gold’s stronger consensus rating and higher probable upside, analysts plainly believe New Gold is more favorable than NexMetals Mining.
Summary
New Gold beats NexMetals Mining on 12 of the 13 factors compared between the two stocks.
About NexMetals Mining
North American Nickel Inc. operates as a mineral exploration and resource development company. The company engages in the exploration and development of mineral properties in Morocco and Canada, as well as in Botswana. Its principal asset is the Maniitsoq nickel-copper-cobalt-precious metal sulphide project covering an area of 3,048 square kilometers located in southwest Greenland. The company was formerly known as Widescope Resources Inc. and changed its name to North American Nickel Inc. in April 2010. North American Nickel Inc. was incorporated in 1983 and is headquartered in Vancouver, Canada.
About New Gold
New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.
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