Centerra Gold (NYSE:CGAU) & Sigma Lithium (NASDAQ:SGML) Head-To-Head Survey

Centerra Gold (NYSE:CGAU) and Sigma Lithium (NASDAQ:SGML) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Profitability

This table compares Centerra Gold and Sigma Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerra Gold	36.92%	15.35%	10.73%
Sigma Lithium	-19.36%	-37.40%	-7.66%

Insider and Institutional Ownership

55.4% of Centerra Gold shares are owned by institutional investors. Comparatively, 64.9% of Sigma Lithium shares are owned by institutional investors. 0.2% of Centerra Gold shares are owned by insiders. Comparatively, 48.6% of Sigma Lithium shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Centerra Gold has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Centerra Gold and Sigma Lithium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerra Gold	1	1	5	0	2.57
Sigma Lithium	3	2	3	0	2.00

Centerra Gold currently has a consensus target price of $21.00, indicating a potential upside of 3.40%. Sigma Lithium has a consensus target price of $14.30, indicating a potential upside of 82.28%. Given Sigma Lithium’s higher possible upside, analysts plainly believe Sigma Lithium is more favorable than Centerra Gold.

Valuation and Earnings

This table compares Centerra Gold and Sigma Lithium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerra Gold	$1.38 billion	2.87	$583.99 million	$3.13	6.49
Sigma Lithium	$110.01 million	8.04	-$50.19 million	($0.24)	-32.69

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

Summary

Centerra Gold beats Sigma Lithium on 10 of the 14 factors compared between the two stocks.

About Centerra Gold

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey. The company was incorporated in 2002 and is based in Toronto, Canada.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.