New Found Gold (NYSE:NFGC – Get Free Report) and Osisko Gold Royalties (NYSE:OR – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Volatility and Risk
New Found Gold has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Osisko Gold Royalties has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.
Valuation and Earnings
This table compares New Found Gold and Osisko Gold Royalties’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.30) | -8.13 |
| Osisko Gold Royalties | $183.20 million | 17.12 | -$35.81 million | ($0.21) | -80.19 |
Insider and Institutional Ownership
3.4% of New Found Gold shares are owned by institutional investors. Comparatively, 68.5% of Osisko Gold Royalties shares are owned by institutional investors. 0.6% of Osisko Gold Royalties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares New Found Gold and Osisko Gold Royalties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Found Gold | N/A | -112.52% | -91.76% |
| Osisko Gold Royalties | -36.71% | 6.80% | 5.72% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for New Found Gold and Osisko Gold Royalties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 0 | 1 | 0 | 3.00 |
| Osisko Gold Royalties | 0 | 0 | 1 | 1 | 3.50 |
New Found Gold presently has a consensus price target of $9.00, suggesting a potential upside of 268.85%. Osisko Gold Royalties has a consensus price target of $19.00, suggesting a potential upside of 12.83%. Given New Found Gold’s higher possible upside, equities analysts clearly believe New Found Gold is more favorable than Osisko Gold Royalties.
Summary
Osisko Gold Royalties beats New Found Gold on 9 of the 13 factors compared between the two stocks.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland. 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.
About Osisko Gold Royalties
Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company's primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.
Receive News & Ratings for New Found Gold Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for New Found Gold and related companies with MarketBeat.com's FREE daily email newsletter.
