DRDGOLD (NYSE:DRD – Get Rating) and Tanzanian Gold (NYSE:TRX – Get Rating) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Analyst Recommendations
This is a summary of recent recommendations and price targets for DRDGOLD and Tanzanian Gold, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
DRDGOLD | 0 | 0 | 1 | 0 | 3.00 |
Tanzanian Gold | 0 | 0 | 0 | 0 | N/A |
DRDGOLD currently has a consensus price target of $18.25, indicating a potential upside of 128.13%. Given DRDGOLD’s higher probable upside, research analysts clearly believe DRDGOLD is more favorable than Tanzanian Gold.
Volatility and Risk
DRDGOLD has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Tanzanian Gold has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Institutional and Insider Ownership
11.1% of DRDGOLD shares are held by institutional investors. Comparatively, 0.8% of Tanzanian Gold shares are held by institutional investors. 1.0% of DRDGOLD shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares DRDGOLD and Tanzanian Gold’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
DRDGOLD | N/A | N/A | N/A |
Tanzanian Gold | N/A | -16.24% | -13.30% |
Valuation & Earnings
This table compares DRDGOLD and Tanzanian Gold’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
DRDGOLD | $343.54 million | 2.01 | $93.88 million | N/A | N/A |
Tanzanian Gold | N/A | N/A | -$4.00 million | ($0.03) | -9.87 |
DRDGOLD has higher revenue and earnings than Tanzanian Gold.
Summary
DRDGOLD beats Tanzanian Gold on 9 of the 9 factors compared between the two stocks.
DRDGOLD Company Profile (Get Rating)
Tanzanian Gold Company Profile (Get Rating)
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Read More:Tanzanian Gold (NYSE:TRX) vs. DRDGOLD (NYSE:DRD) Head to Head Comparison
2022-05-01 08:12:24