Reviewing Teck Resources (NYSE:TECK) and Entree Gold (OTCMKTS:ERLFF)

Entree Gold (OTCMKTS:ERLFFGet Free Report) and Teck Resources (NYSE:TECKGet Free Report) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Earnings and Valuation

This table compares Entree Gold and Teck Resources”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entree Gold N/A N/A -$12.20 million ($0.08) -26.70
Teck Resources $7.70 billion 3.77 $1.00 billion $2.73 21.99

Teck Resources has higher revenue and earnings than Entree Gold. Entree Gold is trading at a lower price-to-earnings ratio than Teck Resources, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Entree Gold and Teck Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entree Gold 0 0 0 0 0.00
Teck Resources 0 13 5 0 2.28

Teck Resources has a consensus price target of $59.83, indicating a potential downside of 0.34%. Given Teck Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Teck Resources is more favorable than Entree Gold.

Volatility & Risk

Entree Gold has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Teck Resources has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Entree Gold and Teck Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entree Gold N/A N/A -196.40%
Teck Resources 14.91% 7.94% 4.62%

Institutional & Insider Ownership

78.1% of Teck Resources shares are owned by institutional investors. 3.4% of Entree Gold shares are owned by company insiders. Comparatively, 0.1% of Teck Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Teck Resources beats Entree Gold on 12 of the 13 factors compared between the two stocks.

About Entree Gold

(Get Free Report)

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.

About Teck Resources

(Get Free Report)

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen. The company also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, it explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. The company was founded in 1913 and is headquartered in Vancouver, Canada.

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