Gold Resource (NASDAQ: GORO) and Rio Tinto plc (NYSE:RIO) are both integrated mining companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Valuation and Earnings
This table compares Gold Resource and Rio Tinto plc’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Rio Tinto plc||$33.78 billion||1.98||$4.62 billion||N/A||N/A|
Rio Tinto plc has higher revenue and earnings than Gold Resource.
Institutional & Insider Ownership
7.0% of Rio Tinto plc shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Gold Resource and Rio Tinto plc’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rio Tinto plc||N/A||N/A||N/A|
This is a breakdown of current ratings and price targets for Gold Resource and Rio Tinto plc, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rio Tinto plc||1||7||10||0||2.50|
Rio Tinto plc has a consensus target price of $48.59, indicating a potential downside of 1.23%. Given Rio Tinto plc’s higher possible upside, analysts plainly believe Rio Tinto plc is more favorable than Gold Resource.
Rio Tinto plc pays an annual dividend of $2.37 per share and has a dividend yield of 4.8%. Gold Resource does not pay a dividend.
Volatility & Risk
Gold Resource has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Rio Tinto plc has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Rio Tinto plc beats Gold Resource on 6 of the 9 factors compared between the two stocks.
Gold Resource Company Profile
Gold Resource Corporation is a mining company. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and dore containing gold and silver at the Aguila Project within its Oaxaca Mining Unit located in the southern state of Oaxaca, Mexico. The Company has two units in North America, the Oaxaca Mining Unit and the Nevada Mining Unit. The Company’s mineral properties are classified into two categories, such as Operating Properties and Exploration Properties. As of December 31, 2016, the Company had interest in nine properties, where over six of its properties, including one Operating Property and five Exploration Properties, are within its Oaxaca Mining Unit, which is located in the southern state of Oaxaca, Mexico. As of December 31, 2016, the Company also had three Exploration Properties within its Nevada Mining Unit located in south central Nevada’s Walker Lane Mineral Belt in the United States.
Rio Tinto plc Company Profile
Rio Tinto plc is a mining and metals company. The Company’s business is finding, mining and processing mineral resources. The Company’s segments include Iron Ore, Aluminium, Copper & Diamonds, Energy & Minerals and Other Operations. The Company operates an iron ore business, supplying the global seaborne iron ore trade. Its Iron Ore product operations are located in the Pilbara region of Western Australia. The Aluminium business includes bauxite mines, alumina refineries and aluminum smelters. Its bauxite mines are located in Australia, Brazil and Guinea. The Copper & Diamonds segment has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals segment consists of mining, refining and marketing operations in over 10 countries, across six sectors: borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium.
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