Critical Contrast: Centerra Gold (NYSE:CGAU) & i-80 Gold (NYSE:IAUX)

i-80 Gold (NYSE:IAUX) and Centerra Gold (NYSE:CGAU) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Profitability

This table compares i-80 Gold and Centerra Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
i-80 Gold	-231.43%	-21.18%	-12.67%
Centerra Gold	6.62%	8.83%	6.61%

Volatility and Risk

i-80 Gold has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Centerra Gold has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares i-80 Gold and Centerra Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
i-80 Gold	$52.94 million	4.37	-$65.20 million	($0.29)	-1.80
Centerra Gold	$1.21 billion	0.97	-$81.28 million	$0.36	15.63

i-80 Gold has higher earnings, but lower revenue than Centerra Gold. i-80 Gold is trading at a lower price-to-earnings ratio than Centerra Gold, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for i-80 Gold and Centerra Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
i-80 Gold	0	2	0	1	2.67
Centerra Gold	0	4	1	1	2.50

i-80 Gold presently has a consensus target price of $3.50, indicating a potential upside of 569.22%. Centerra Gold has a consensus target price of $11.00, indicating a potential upside of 95.56%. Given i-80 Gold’s stronger consensus rating and higher probable upside, equities research analysts clearly believe i-80 Gold is more favorable than Centerra Gold.

Insider & Institutional Ownership

61.3% of i-80 Gold shares are held by institutional investors. Comparatively, 55.4% of Centerra Gold shares are held by institutional investors. 0.2% of Centerra Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Centerra Gold beats i-80 Gold on 8 of the 14 factors compared between the two stocks.

About i-80 Gold

i-80 Gold Corp. is a mining company, engages in the exploration, development and production of gold and silver mineral deposits principally in the United States. i-80 Gold Corp. is based in Reno, Nevada.

About Centerra Gold

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey. The company was incorporated in 2002 and is based in Toronto, Canada.