Analyzing Beadell Resources (OTCMKTS:BDREF) and Golden Star Resources (OTCMKTS:GSS)

Golden Star Resources (NYSE:GSS) and Beadell Resources (OTCMKTS:BDREF) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Risk & Volatility

Golden Star Resources has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Beadell Resources has a beta of 3.13, indicating that its stock price is 213% more volatile than the S&P 500.

Institutional & Insider Ownership

25.4% of Golden Star Resources shares are owned by institutional investors. 2.8% of Golden Star Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Golden Star Resources and Beadell Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golden Star Resources $264.74 million 1.84 -$67.43 million $0.16 27.50
Beadell Resources N/A N/A N/A N/A N/A

Beadell Resources has lower revenue, but higher earnings than Golden Star Resources.

Profitability

This table compares Golden Star Resources and Beadell Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golden Star Resources -16.59% -176.24% 5.50%
Beadell Resources N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Golden Star Resources and Beadell Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golden Star Resources 0 0 2 0 3.00
Beadell Resources 0 0 0 0 N/A

Golden Star Resources currently has a consensus target price of $7.13, indicating a potential upside of 61.93%. Given Golden Star Resources’ higher probable upside, research analysts plainly believe Golden Star Resources is more favorable than Beadell Resources.

Summary

Golden Star Resources beats Beadell Resources on 6 of the 9 factors compared between the two stocks.

Golden Star Resources Company Profile

Golden Star Resources Ltd. operates as a gold mining and exploration company. The company owns and operates the Wassa open-pit gold mine, the Wassa underground mine, and a carbon-in-leach processing plant located to the northeast of the town of Tarkwa, Ghana; and the Bogoso gold mining and processing operation, the Prestea open-pit mining operations, and the Prestea underground mine located near the town of Prestea, Ghana. It also holds and manages interests in various gold exploration properties in Ghana and Brazil. The company was incorporated in 1992 and is headquartered in Toronto, Canada.

Beadell Resources Company Profile

Beadell Resources Ltd. engages in the exploration for and evaluation of mineral resources in Australia and Brazil. It operates through the Australian Exploration; and Brazilian Exploration and Operations segments. Its projects include Brazil Tucano Gold Mine and Brazil Tartaruga Project. The company was founded by Peter Reginald Bowler, Robert Holmes Watkins and Gregory Barrett on May 3, 2007 and is headquartered in West Perth, Australia.

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