New Found Gold (NYSE:NFGC – Get Free Report) and Rare Element Resources (OTCMKTS:REEMF – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Volatility and Risk
New Found Gold has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Rare Element Resources has a beta of -0.44, indicating that its stock price is 144% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for New Found Gold and Rare Element Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 0 | 2 | 0 | 3.00 |
| Rare Element Resources | 0 | 0 | 0 | 0 | N/A |
Valuation & Earnings
This table compares New Found Gold and Rare Element Resources’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.33) | -11.15 |
| Rare Element Resources | N/A | N/A | -$9.00 million | ($0.03) | -6.46 |
New Found Gold is trading at a lower price-to-earnings ratio than Rare Element Resources, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
3.4% of New Found Gold shares are owned by institutional investors. 3.2% of Rare Element Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares New Found Gold and Rare Element Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Found Gold | N/A | -135.56% | -105.99% |
| Rare Element Resources | N/A | -80.15% | -67.19% |
Summary
Rare Element Resources beats New Found Gold on 6 of the 10 factors compared between the two stocks.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. The company primarily explores for gold deposit. It holds 100% interests in the Queensway project that includes 94 mineral licenses and 6,649 claims covering an area of 166,225 hectares of land located near Gander, Newfoundland; and the Lucky Strike project comprising 11,684 hectares located in Kirkland Lake, Ontario. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.
About Rare Element Resources
Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.
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