B2Gold (NYSE:BTG – Get Free Report) and Gold Resource (NYSE:GORO – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Institutional & Insider Ownership
61.4% of B2Gold shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 1.2% of B2Gold shares are held by company insiders. Comparatively, 2.7% of Gold Resource shares are held by company 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.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for B2Gold and Gold Resource, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| B2Gold | 0 | 5 | 1 | 0 | 2.17 |
| Gold Resource | 0 | 0 | 1 | 0 | 3.00 |
Risk and Volatility
B2Gold has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Dividends
B2Gold pays an annual dividend of $0.16 per share and has a dividend yield of 4.9%. Gold Resource pays an annual dividend of $0.04 per share and has a dividend yield of 9.4%. B2Gold pays out -533.3% of its earnings in the form of a dividend. Gold Resource pays out -19.0% 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.
Valuation & Earnings
This table compares B2Gold and Gold Resource”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| B2Gold | $1.94 billion | 2.19 | $10.10 million | ($0.03) | -108.33 |
| Gold Resource | $81.18 million | 0.48 | -$16.02 million | ($0.21) | -2.02 |
B2Gold has higher revenue and earnings than Gold Resource. B2Gold is trading at a lower price-to-earnings ratio than Gold Resource, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares B2Gold and Gold Resource’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| B2Gold | -7.44% | 8.01% | 6.25% |
| Gold Resource | -51.93% | -27.52% | -13.63% |
Summary
B2Gold beats Gold Resource on 9 of the 15 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 Gold Resource
Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.
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