New Found Gold (NYSE:NFGC – Get Free Report) and Southern Copper (NYSE:SCCO – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Insider & Institutional Ownership
3.4% of New Found Gold shares are held by institutional investors. Comparatively, 7.9% of Southern Copper shares are held by institutional investors. 0.1% of Southern Copper 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 New Found Gold and Southern Copper”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | $31.42 million | 18.49 | -$59.18 million | ($0.20) | -7.52 |
| Southern Copper | $17.11 billion | 8.33 | $4.33 billion | $7.64 | 22.09 |
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.
Risk and Volatility
New Found Gold has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Southern Copper has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for New Found Gold and Southern Copper, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 1 | 0 | 0 | 2.00 |
| Southern Copper | 6 | 4 | 3 | 0 | 1.77 |
Southern Copper has a consensus target price of $159.47, indicating a potential downside of 5.51%. Given Southern Copper’s higher possible upside, analysts plainly believe Southern Copper is more favorable than New Found Gold.
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. is a Canadian mineral exploration company focused on discovering and evaluating gold deposits. The company’s principal asset is its Queensway project in Newfoundland and Labrador, near the town of Gander. At Queensway, New Found Gold conducts exploration activities including drilling, geological mapping and sampling to investigate gold-bearing zones and assess their potential. The company is focused on advancing the project through exploration and resource evaluation rather than operating a producing mine.
About Southern Copper
Southern Copper Corporation is an integrated mining company focused primarily on the exploration, mining, processing, and refining of copper. Its operations also produce molybdenum, zinc, lead, silver, and other mineral products. The company operates mines and processing facilities in Peru and Mexico, including the Toquepala and Cuajone operations in Peru and the Buenavista and La Caridad operations in Mexico. Its activities extend across the mining and metals value chain, from extracting ore to producing refined metals and concentrates.
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