Gold Resource (NASDAQ: GORO) and Turquoise Hill Resources (NYSE:TRQ) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider and Institutional Ownership

32.9% of Turquoise Hill Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Gold Resource and Turquoise Hill Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Resource 0 0 0 0 N/A
Turquoise Hill Resources 0 3 3 0 2.50

Turquoise Hill Resources has a consensus price target of $5.00, indicating a potential upside of 54.32%. Given Turquoise Hill Resources’ higher probable upside, analysts clearly believe Turquoise Hill Resources is more favorable than Gold Resource.

Profitability

This table compares Gold Resource and Turquoise Hill Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gold Resource 4.04% 3.08% 2.71%
Turquoise Hill Resources 14.20% 1.60% 1.01%

Earnings and Valuation

This table compares Gold Resource and Turquoise Hill Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gold Resource $85.35 million 2.63 $20.77 million N/A N/A
Turquoise Hill Resources $892.02 million 7.31 $159.41 million $0.06 54.01

Turquoise Hill Resources has higher revenue and earnings than Gold Resource.

Summary

Turquoise Hill Resources beats Gold Resource on 7 of the 10 factors compared between the two stocks.

About Gold Resource

Gold Resource Corporation is a mining company. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and dore containing gold and silver at the Aguila Project within its Oaxaca Mining Unit located in the southern state of Oaxaca, Mexico. The Company has two units in North America, the Oaxaca Mining Unit and the Nevada Mining Unit. The Company’s mineral properties are classified into two categories, such as Operating Properties and Exploration Properties. As of December 31, 2016, the Company had interest in nine properties, where over six of its properties, including one Operating Property and five Exploration Properties, are within its Oaxaca Mining Unit, which is located in the southern state of Oaxaca, Mexico. As of December 31, 2016, the Company also had three Exploration Properties within its Nevada Mining Unit located in south central Nevada’s Walker Lane Mineral Belt in the United States.

About Turquoise Hill Resources

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

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