Contrasting Jaguar Mining (OTCMKTS:JAGGF) and Eldorado Gold (NYSE:EGO)

Eldorado Gold (NYSE:EGO) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Insider & Institutional Ownership

69.6% of Eldorado Gold shares are owned by institutional investors. 0.6% of Eldorado Gold shares are owned by insiders. Comparatively, 0.6% of Jaguar Mining shares are owned by insiders. 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.

Risk & Volatility

Eldorado Gold has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eldorado Gold	27.89%	8.63%	5.57%
Jaguar Mining	-10.83%	3.72%	2.55%

Valuation and Earnings

This table compares Eldorado Gold and Jaguar Mining”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eldorado Gold	$1.82 billion	3.68	$507.26 million	$2.48	13.60
Jaguar Mining	$158.63 million	2.63	-$1.29 million	($0.19)	-25.68

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

Dividends

Eldorado Gold pays an annual dividend of $0.30 per share and has a dividend yield of 0.9%. Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. Eldorado Gold pays out 12.1% of its earnings in the form of a dividend. Jaguar Mining pays out -15.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent ratings for Eldorado Gold and Jaguar Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eldorado Gold	1	5	3	1	2.40
Jaguar Mining	0	0	0	0	0.00

Eldorado Gold currently has a consensus price target of $43.71, indicating a potential upside of 29.62%. Given Eldorado Gold’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Eldorado Gold is more favorable than Jaguar Mining.

Summary

Eldorado Gold beats Jaguar Mining on 14 of the 16 factors compared between the two stocks.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.