Exxaro Resources (OTCMKTS:EXXAY) & Western Copper & Gold (NYSE:WRN) Critical Analysis

Exxaro Resources (OTCMKTS:EXXAY) and Western Copper & Gold (NYSE:WRN) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

Exxaro Resources has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Western Copper & Gold has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Exxaro Resources and Western Copper & Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exxaro Resources	0	0	0	0	0.00
Western Copper & Gold	0	0	4	2	3.33

Western Copper & Gold has a consensus price target of $4.00, indicating a potential upside of 225.20%. Given Western Copper & Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Western Copper & Gold is more favorable than Exxaro Resources.

Profitability

This table compares Exxaro Resources and Western Copper & Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exxaro Resources	N/A	N/A	N/A
Western Copper & Gold	N/A	-3.53%	-3.45%

Insider & Institutional Ownership

22.0% of Western Copper & Gold shares are held by institutional investors. 4.6% of Western Copper & Gold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Exxaro Resources and Western Copper & Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exxaro Resources	$1.78 billion	1.63	$679.76 million	N/A	N/A
Western Copper & Gold	N/A	N/A	-$2.47 million	($0.02)	-61.50

Exxaro Resources has higher revenue and earnings than Western Copper & Gold.

Summary

Western Copper & Gold beats Exxaro Resources on 7 of the 11 factors compared between the two stocks.

About Exxaro Resources

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia. The company operates through Coal; Ferrous; Energy; and Other segments. It produces thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; offers gas-atomised ferrosilicon for use in separation plants, as well as iron ore; and operates two wind farms. The company was formerly known as Kumba Iron Ore Limited and changed its name to Exxaro Resources Limited in November 2006. The company is based in Pretoria, South Africa.

About Western Copper & Gold

Western Copper & Gold Corp. operates as an exploration stage company, which engages in the acquisition, exploration, and future development of mineral resource properties. It currently focuses on the development of the Casino Project. The company was founded on March 17, 2006 and is headquartered in Vancouver, Canada.