Head-To-Head Analysis: Dakota Territory Resource (OTCMKTS:DTRC) & New Gold (NYSE:NGD)

New Gold (NYSE:NGD) and Dakota Territory Resource (OTCMKTS:DTRC) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for New Gold and Dakota Territory Resource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Gold	0	2	3	2	3.00
Dakota Territory Resource	0	0	0	0	N/A

New Gold currently has a consensus price target of $3.08, suggesting a potential upside of 7.88%. Given New Gold’s higher probable upside, analysts clearly believe New Gold is more favorable than Dakota Territory Resource.

Insider and Institutional Ownership

42.8% of New Gold shares are owned by institutional investors. 0.2% of New Gold shares are owned by insiders. Comparatively, 59.3% of Dakota Territory Resource shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares New Gold and Dakota Territory Resource”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Gold	$810.80 million	2.78	-$64.50 million	($0.10)	-28.55
Dakota Territory Resource	N/A	N/A	N/A	N/A	N/A

Dakota Territory Resource has lower revenue, but higher earnings than New Gold.

Profitability

This table compares New Gold and Dakota Territory Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Gold	-2.53%	5.22%	2.03%
Dakota Territory Resource	N/A	N/A	N/A

Summary

New Gold beats Dakota Territory Resource on 7 of the 9 factors compared between the two stocks.

About New Gold

New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.

About Dakota Territory Resource

Dakota Territory Resource Corp., an exploration stage company, engages in the acquisition, exploration, and development of gold properties in the United States. It holds 100% interests in eight mineral properties, including the Blind Gold, City Creek, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, and Homestake Paleoplacer properties covering an area of approximately 19,500 acres located in the Black Hills of South Dakota. The company was formerly known as Mustang Geothermal Corp and changed its name to Dakota Territory Resource Corp. in September 2012. Dakota Territory Resource Corp. was incorporated in 2002 and is headquartered in Lead, South Dakota.