Critical Contrast: Fresnillo (OTCMKTS:FNLPF) & New Found Gold (NYSE:NFGC)

Fresnillo (OTCMKTS:FNLPF) and New Found Gold (NYSE:NFGC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Valuation and Earnings

This table compares Fresnillo and New Found Gold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresnillo	$2.71 billion	2.53	$233.91 million	N/A	N/A
New Found Gold	N/A	N/A	-$59.18 million	($0.28)	-7.84

Fresnillo has higher revenue and earnings than New Found Gold.

Institutional and Insider Ownership

3.4% of New Found Gold shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Fresnillo has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, New Found Gold has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Fresnillo and New Found Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresnillo	N/A	N/A	N/A
New Found Gold	N/A	-112.52%	-91.76%

Analyst Ratings

This is a breakdown of current ratings and target prices for Fresnillo and New Found Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresnillo	0	1	0	1	3.00
New Found Gold	0	0	1	0	3.00

New Found Gold has a consensus price target of $9.00, indicating a potential upside of 310.02%. Given New Found Gold’s higher possible upside, analysts plainly believe New Found Gold is more favorable than Fresnillo.

Summary

Fresnillo beats New Found Gold on 5 of the 9 factors compared between the two stocks.

About Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.

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.