New Found Gold (NYSE:NFGC – Get Free Report) and Southern Copper (NYSE:SCCO – Get Free Report) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Institutional & Insider Ownership
3.4% of New Found Gold shares are owned by institutional investors. Comparatively, 7.9% of Southern Copper shares are owned by institutional investors. 0.1% of Southern Copper shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
New Found Gold has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Southern Copper has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for New Found Gold and Southern Copper, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 1 | 0 | 0 | 2.00 |
| Southern Copper | 7 | 4 | 2 | 0 | 1.62 |
Southern Copper has a consensus target price of $159.26, suggesting a potential downside of 4.69%. Given Southern Copper’s higher probable upside, analysts clearly believe Southern Copper is more favorable than New Found Gold.
Earnings & Valuation
This table compares New Found Gold and Southern Copper”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | $31.42 million | 21.13 | -$59.18 million | ($0.20) | -8.60 |
| Southern Copper | $13.42 billion | 10.39 | $4.33 billion | $7.64 | 21.87 |
Southern Copper has higher revenue and earnings than New Found Gold. New Found Gold is trading at a lower price-to-earnings ratio than Southern Copper, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares New Found Gold and Southern Copper’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Found Gold | N/A | -82.80% | -68.88% |
| Southern Copper | 37.16% | 51.61% | 27.33% |
Summary
Southern Copper beats New Found Gold on 11 of the 14 factors compared between the two stocks.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.
About Southern Copper
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; a coal mine; and a zinc refinery. The company has interests in 156,818 hectares and 502,688 hectares of concessions in Peru and Mexico; and 168,200 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.
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