Paramount Gold Nevada Corp (NYSE: PZG) and Randgold Resources Limited (NASDAQ:GOLD) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Valuation & Earnings

This table compares Paramount Gold Nevada Corp and Randgold Resources Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Paramount Gold Nevada Corp N/A N/A -$4.75 million N/A N/A
Randgold Resources Limited $1.32 billion 7.33 $698.29 million $3.13 32.87

Randgold Resources Limited has higher revenue and earnings than Paramount Gold Nevada Corp.

Profitability

This table compares Paramount Gold Nevada Corp and Randgold Resources Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Gold Nevada Corp -599.29% -11.32% -10.95%
Randgold Resources Limited 22.75% 7.89% 7.33%

Dividends

Randgold Resources Limited pays an annual dividend of $0.98 per share and has a dividend yield of 1.0%. Paramount Gold Nevada Corp does not pay a dividend. Randgold Resources Limited pays out 31.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Paramount Gold Nevada Corp and Randgold Resources Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Gold Nevada Corp 0 0 1 0 3.00
Randgold Resources Limited 1 7 6 0 2.36

Paramount Gold Nevada Corp presently has a consensus price target of $2.00, suggesting a potential upside of 26.58%. Randgold Resources Limited has a consensus price target of $102.33, suggesting a potential downside of 0.52%. Given Paramount Gold Nevada Corp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Paramount Gold Nevada Corp is more favorable than Randgold Resources Limited.

Institutional & Insider Ownership

35.6% of Randgold Resources Limited shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Randgold Resources Limited beats Paramount Gold Nevada Corp on 8 of the 11 factors compared between the two stocks.

Paramount Gold Nevada Corp Company Profile

Paramount Gold Nevada Corp. is an exploration-stage mining company. The Company is engaged in the business of acquiring, exploring and developing precious metal projects in the United States. Its principal Nevada interest, the Sleeper Gold Project, is located in Humboldt County, Nevada. Its project located in Oregon, known as the Grassy Mountain Project, is situated in Malheur County, Oregon. As of June 30, 2016, the Company owned additional mining claims in the State of Nevada, including the Mill Creek property, which had 36 unpatented lode mining claims in Lander County, and the Spring Valley property, which had 38 lode mining claims in Pershing County. Its subsidiaries, New Sleeper Gold LLC and Sleeper Mining Company, LLC, operate its mining interests in Nevada. Its subsidiaries, Calico Resources Corp. and Calico Resources USA Corp., hold its interest in the Grassy Mountain Project in Oregon. As of June 30, 2016, the Company had not generated any revenues from operations.

Randgold Resources Limited Company Profile

Randgold Resources Limited is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. As of December 31, 2016, Morila mine has produced 122,370 ounces (oz) of gold. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. As of December 31, 2016, Loulo mine has produced 350,604 oz of gold. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA.

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