Analyzing New Gold (NGD) and Its Rivals

New Gold (NYSE: NGD) is one of 79 publicly-traded companies in the “Metal mining” industry, but how does it weigh in compared to its rivals? We will compare New Gold to similar companies based on the strength of its earnings, risk, profitability, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares New Gold and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Gold -17.00% -5.94% -2.30%
New Gold Competitors -9.22% 2.84% 0.12%

Institutional and Insider Ownership

37.7% of New Gold shares are owned by institutional investors. Comparatively, 22.1% of shares of all “Metal mining” companies are owned by institutional investors. 9.4% of shares of all “Metal mining” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares New Gold and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
New Gold $630.60 million -$73.50 million -25.75
New Gold Competitors $6.15 billion $776.64 million -12.13

New Gold’s rivals have higher revenue and earnings than New Gold. New Gold is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

New Gold has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500. Comparatively, New Gold’s rivals have a beta of 0.42, indicating that their average stock price is 58% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for New Gold and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Gold 1 1 0 0 1.50
New Gold Competitors 649 1846 1940 105 2.33

New Gold presently has a consensus price target of $1.88, indicating a potential downside of 8.98%. As a group, “Metal mining” companies have a potential upside of 29.58%. Given New Gold’s rivals stronger consensus rating and higher possible upside, analysts plainly believe New Gold has less favorable growth aspects than its rivals.

Summary

New Gold rivals beat New Gold on 11 of the 13 factors compared.

About New Gold

New Gold Inc., an intermediate gold mining company, engages in the development and operation of mineral properties. It explores for gold, silver, and copper deposits. The company's principal operating properties include 100% interests in the Rainy River gold-silver mine located in Ontario, Canada; and New Afton gold-copper mine located in British Columbia, Canada. It also holds 100% interests in the Blackwater gold-silver project located in British Columbia, Canada; and operates the Cerro San Pedro gold-silver mine in Mexico. New Gold Inc. is headquartered in Toronto, Canada.

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