Barrick Gold Corporation (NYSE: ABX) and Eldorado Gold Corporation (NYSE:EGO) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
Institutional and Insider Ownership
58.9% of Barrick Gold Corporation shares are held by institutional investors. Comparatively, 50.8% of Eldorado Gold Corporation shares are held by institutional investors. 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.
Earnings and Valuation
This table compares Barrick Gold Corporation and Eldorado Gold Corporation’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Barrick Gold Corporation | $8.77 billion | 2.27 | $4.42 billion | $2.02 | 8.44 |
| Eldorado Gold Corporation | $425.59 million | 3.36 | $143.89 million | $0.01 | 200.20 |
Barrick Gold Corporation has higher revenue and earnings than Eldorado Gold Corporation. Barrick Gold Corporation is trading at a lower price-to-earnings ratio than Eldorado Gold Corporation, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Barrick Gold Corporation and Eldorado Gold Corporation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barrick Gold Corporation | 0 | 8 | 6 | 0 | 2.43 |
| Eldorado Gold Corporation | 2 | 5 | 2 | 0 | 2.00 |
Barrick Gold Corporation presently has a consensus price target of $20.72, suggesting a potential upside of 21.59%. Eldorado Gold Corporation has a consensus price target of $4.80, suggesting a potential upside of 140.00%. Given Eldorado Gold Corporation’s higher probable upside, analysts plainly believe Eldorado Gold Corporation is more favorable than Barrick Gold Corporation.
Volatility & Risk
Barrick Gold Corporation has a beta of -0.23, meaning that its share price is 123% less volatile than the S&P 500. Comparatively, Eldorado Gold Corporation has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Profitability
This table compares Barrick Gold Corporation and Eldorado Gold Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barrick Gold Corporation | 26.95% | 8.91% | 3.71% |
| Eldorado Gold Corporation | 1.00% | 1.41% | 1.04% |
Dividends
Barrick Gold Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. Eldorado Gold Corporation pays an annual dividend of $0.03 per share and has a dividend yield of 1.5%. Barrick Gold Corporation pays out 5.9% of its earnings in the form of a dividend. Eldorado Gold Corporation pays out 300.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Barrick Gold Corporation beats Eldorado Gold Corporation on 10 of the 15 factors compared between the two stocks.
About Barrick Gold Corporation
Barrick Gold Corporation (Barrick) is a gold mining company. The Company is principally engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary, Acacia, owns gold mines and exploration properties in Africa. It also holds interest in gold mines, including Porgera and Kalgoorlie, and copper mines, such as Zaldivar and Lumwana. The Pascua-Lama project is located on the border between Chile and Argentina. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.
About Eldorado Gold Corporation
Eldorado Gold Corporation (Eldorado) is a gold exploration, development and mining company. The Company’s geographical segments include Turkey, Brazil, Greece, Romania and Other. The Turkey segment includes the Kisladag and the Efemcukuru mines and exploration activities in Turkey. The Brazil segment includes the Vila Nova mine, Tocantinzinho project and exploration activities in Brazil. The Greece segment includes the Stratoni mine, the Olympias, Skouries, Perama Hill and Sapes projects, and exploration activities in Greece. The Romania segment includes the Certej project and exploration activities in Romania. Other segment includes operations of the Company’s corporate office and exploration activities in other countries. The Company has operations and ongoing exploration and development projects in Turkey, Greece, Brazil and Romania. Its Operating gold mines include Kisladag in Turkey, and Efemcukuru in Turkey.
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