Analyzing Norsk Hydro ASA (OTCMKTS:NHYDY) and Eldorado Gold (NYSE:EGO)

Eldorado Gold (NYSE:EGO) and Norsk Hydro ASA (OTCMKTS:NHYDY) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

This table compares Eldorado Gold and Norsk Hydro ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eldorado Gold	29.83%	10.91%	7.07%
Norsk Hydro ASA	4.90%	11.46%	6.05%

Valuation and Earnings

This table compares Eldorado Gold and Norsk Hydro ASA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eldorado Gold	$1.82 billion	5.17	$507.26 million	$2.82	12.74
Norsk Hydro ASA	$20.05 billion	0.80	$647.52 million	$0.52	15.52

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

Analyst Recommendations

This is a summary of current ratings and target prices for Eldorado Gold and Norsk Hydro ASA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eldorado Gold	0	7	6	2	2.67
Norsk Hydro ASA	1	7	2	1	2.27

Eldorado Gold currently has a consensus target price of $46.57, suggesting a potential upside of 29.61%. Given Eldorado Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Eldorado Gold is more favorable than Norsk Hydro ASA.

Institutional & Insider Ownership

69.6% of Eldorado Gold shares are held by institutional investors. Comparatively, 0.0% of Norsk Hydro ASA shares are held by institutional investors. 0.6% of Eldorado Gold shares are held by insiders. Comparatively, 0.0% of Norsk Hydro ASA 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.

Dividends

Eldorado Gold pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Norsk Hydro ASA pays an annual dividend of $0.23 per share and has a dividend yield of 2.9%. Eldorado Gold pays out 10.6% of its earnings in the form of a dividend. Norsk Hydro ASA pays out 44.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Eldorado Gold has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Norsk Hydro ASA has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Summary

Eldorado Gold beats Norsk Hydro ASA on 11 of the 17 factors compared between the two stocks.

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.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.