Westwater Resources (NASDAQ:WWR – Get Free Report) and New Gold (NYSE:NGD – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Profitability
This table compares Westwater Resources and New Gold’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Westwater Resources | N/A | -5.89% | -5.50% |
New Gold | 11.10% | 13.70% | 6.31% |
Institutional and Insider Ownership
7.7% of Westwater Resources shares are owned by institutional investors. Comparatively, 42.8% of New Gold shares are owned by institutional investors. 2.4% of Westwater Resources shares are owned by insiders. Comparatively, 0.2% of New Gold shares are owned by 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.
Volatility and Risk
Analyst Ratings
This is a summary of recent ratings and price targets for Westwater Resources and New Gold, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Westwater Resources | 0 | 0 | 1 | 0 | 3.00 |
New Gold | 0 | 1 | 4 | 2 | 3.14 |
Westwater Resources presently has a consensus target price of $2.50, suggesting a potential upside of 298.47%. New Gold has a consensus target price of $3.60, suggesting a potential upside of 12.85%. Given Westwater Resources’ higher possible upside, equities research analysts plainly believe Westwater Resources is more favorable than New Gold.
Valuation and Earnings
This table compares Westwater Resources and New Gold”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Westwater Resources | N/A | N/A | -$7.75 million | ($0.13) | -4.83 |
New Gold | $924.50 million | 2.73 | -$64.50 million | $0.13 | 24.54 |
Westwater Resources has higher earnings, but lower revenue than New Gold. Westwater Resources is trading at a lower price-to-earnings ratio than New Gold, indicating that it is currently the more affordable of the two stocks.
Summary
New Gold beats Westwater Resources on 10 of the 14 factors compared between the two stocks.
About Westwater Resources
Westwater Resources, Inc. operates as an energy technology company, focuses on developing battery-grade natural graphite materials. The company holds interests in Kellyton Graphite Plant located in Kellyton, Alabama; and Bama Mine Project situated in south Alabama. It holds interests in Coosa graphite project located in Coosa County, Alabama. The company was formerly known as Uranium Resources, Inc. and changed its name to Westwater Resources, Inc. in August 2017. Westwater Resources, Inc. was incorporated in 1977 and is headquartered in Centennial, Colorado.
About New Gold
New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.
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