Head to Head Analysis: Solgold (OTCMKTS:SLGGF) and Iamgold (NYSE:IAG)

Iamgold (NYSE:IAG) and Solgold (OTCMKTS:SLGGF) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Risk and Volatility

Iamgold has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Solgold has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Insider & Institutional Ownership

47.1% of Iamgold shares are held by institutional investors. 0.2% of Iamgold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Iamgold and Solgold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iamgold	29.49%	26.65%	18.54%
Solgold	N/A	-26.92%	-12.63%

Analyst Recommendations

This is a summary of current recommendations and price targets for Iamgold and Solgold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iamgold	0	3	4	1	2.75
Solgold	0	0	0	0	0.00

Iamgold currently has a consensus price target of $17.75, indicating a potential upside of 7.36%. Given Iamgold’s stronger consensus rating and higher probable upside, equities analysts clearly believe Iamgold is more favorable than Solgold.

Valuation & Earnings

This table compares Iamgold and Solgold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iamgold	$2.85 billion	3.35	$664.40 million	$1.72	9.61
Solgold	N/A	N/A	-$36.25 million	($0.01)	-37.40

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

Summary

Iamgold beats Solgold on 14 of the 14 factors compared between the two stocks.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.