B2Gold (NYSE:BTG – Get Free Report) and New Found Gold (NYSE:NFGC – Get Free Report) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider Ownership
61.4% of B2Gold shares are held by institutional investors. Comparatively, 3.4% of New Found Gold shares are held by institutional investors. 1.2% of B2Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
B2Gold has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, New Found Gold has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| B2Gold | 1 | 5 | 1 | 0 | 2.00 |
| New Found Gold | 0 | 0 | 1 | 0 | 3.00 |
B2Gold currently has a consensus target price of $4.02, indicating a potential upside of 68.06%. New Found Gold has a consensus target price of $9.00, indicating a potential upside of 426.32%. Given New Found Gold’s stronger consensus rating and higher possible upside, analysts plainly believe New Found Gold is more favorable than B2Gold.
Profitability
This table compares B2Gold and New Found Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| B2Gold | -38.42% | 7.53% | 5.56% |
| New Found Gold | N/A | -82.80% | -68.88% |
Valuation and Earnings
This table compares B2Gold and New Found Gold”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| B2Gold | $1.93 billion | 1.63 | $10.10 million | ($0.56) | -4.27 |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.22) | -7.77 |
B2Gold has higher revenue and earnings than New Found Gold. New Found Gold is trading at a lower price-to-earnings ratio than B2Gold, indicating that it is currently the more affordable of the two stocks.
Summary
B2Gold beats New Found Gold on 8 of the 12 factors compared between the two stocks.
About B2Gold
B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.
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; and the Kingsway project located in 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.
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