Eldorado Gold (NYSE:EGO) and Pan American Silver (PAAS) Critical Contrast

Eldorado Gold (NYSE:EGO) and Pan American Silver (NASDAQ:PAAS) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares Eldorado Gold and Pan American Silver’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Gold $391.41 million 1.79 -$9.93 million $0.02 44.00
Pan American Silver $816.83 million 2.73 $120.99 million $0.51 28.53

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

Insider & Institutional Ownership

40.2% of Eldorado Gold shares are owned by institutional investors. Comparatively, 49.3% of Pan American Silver shares are owned by institutional investors. 12.9% of Pan American Silver shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Eldorado Gold and Pan American Silver’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eldorado Gold -8.42% 0.35% 0.26%
Pan American Silver 17.95% 7.06% 5.48%

Volatility & Risk

Eldorado Gold has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Eldorado Gold and Pan American Silver, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Gold 4 4 1 0 1.67
Pan American Silver 0 2 9 0 2.82

Eldorado Gold presently has a consensus price target of $1.14, suggesting a potential upside of 29.73%. Pan American Silver has a consensus price target of $20.88, suggesting a potential upside of 43.47%. Given Pan American Silver’s stronger consensus rating and higher probable upside, analysts plainly believe Pan American Silver is more favorable than Eldorado Gold.

Dividends

Pan American Silver pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. Eldorado Gold does not pay a dividend. Pan American Silver pays out 27.5% of its earnings in the form of a dividend.

Summary

Pan American Silver beats Eldorado Gold on 13 of the 16 factors compared between the two stocks.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, and mining of gold properties in Turkey, Greece, Brazil, Serbia, Canada, and Romania. The company holds 100% interests in the Kisladag and Efemcukuru gold mines in Turkey; Lamaque gold project in Canada; Perama Hill gold-silver project and Sapes in Greece; and Vila Nova iron ore mine and Tocantinzinho gold project in Brazil. It also holds 95% interests in Olympias gold mine, Stratoni silver-lead-zinc mine, and Skouries gold-copper project in Greece; and 80.5% interests in Certej gold-silver project 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 founded in 1992 and is headquartered in Vancouver, Canada.

About Pan American Silver

Pan American Silver Corp., together with its subsidiaries, engages in exploration, extraction, processing, refining, and reclamation of silver mines. The company owns and operates silver mines located in Peru, Mexico, Argentina, and Bolivia. It also produces and sells gold, zinc, lead, and copper. The company holds interests in the La Colorada, Dolores, Alamo Dorado, Huaron, Morococha, Manantial Espejo, and San Vicente mines. Pan American Silver Corp. was founded in 1979 and is headquartered in Vancouver, Canada.

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