Head-To-Head Review: Eldorado Gold (NYSE:EGO) & Jaguar Mining (OTCMKTS:JAGGF)

Jaguar Mining (OTCMKTS:JAGGF) and Eldorado Gold (NYSE:EGO) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Jaguar Mining and Eldorado Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
Eldorado Gold	1	5	3	1	2.40

Eldorado Gold has a consensus target price of $43.71, suggesting a potential upside of 27.42%. Given Eldorado Gold’s stronger consensus rating and higher possible upside, analysts plainly believe Eldorado Gold is more favorable than Jaguar Mining.

Earnings & Valuation

This table compares Jaguar Mining and Eldorado Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$158.63 million	2.75	-$1.29 million	($0.19)	-26.87
Eldorado Gold	$1.82 billion	3.75	$507.26 million	$2.48	13.83

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

Profitability

This table compares Jaguar Mining and Eldorado Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	-10.83%	3.72%	2.55%
Eldorado Gold	27.89%	8.63%	5.57%

Risk & Volatility

Jaguar Mining has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Eldorado Gold has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Insider and Institutional Ownership

69.6% of Eldorado Gold shares are held by institutional investors. 0.6% of Jaguar Mining shares are held by company insiders. Comparatively, 0.6% of Eldorado Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Eldorado Gold beats Jaguar Mining on 13 of the 14 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.