DRDGOLD (NYSE:DRD) and China Natural Resources (NASDAQ:CHNR) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
10.0% of DRDGOLD shares are held by institutional investors. Comparatively, 0.2% of China Natural Resources shares are held by institutional investors. 1.0% of DRDGOLD shares are held by insiders. Comparatively, 23.2% of China Natural Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares DRDGOLD and China Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Natural Resources||N/A||N/A||N/A|
Earnings & Valuation
This table compares DRDGOLD and China Natural Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DRDGOLD||$194.84 million||5.10||$5.53 million||$0.08||180.88|
|China Natural Resources||$1.86 million||15.40||-$810,000.00||N/A||N/A|
DRDGOLD has higher revenue and earnings than China Natural Resources.
This is a summary of recent ratings and target prices for DRDGOLD and China Natural Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Natural Resources||0||0||0||0||N/A|
DRDGOLD presently has a consensus price target of $11.50, indicating a potential downside of 20.53%. Given DRDGOLD’s higher possible upside, research analysts clearly believe DRDGOLD is more favorable than China Natural Resources.
Volatility & Risk
DRDGOLD has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, China Natural Resources has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.
DRDGOLD beats China Natural Resources on 5 of the 8 factors compared between the two stocks.
DRDGOLD Limited, a gold mining company, engages in surface gold tailings retreatment business in South Africa. The company's activities include exploration, extraction, processing, and smelting. It recovers gold from surface tailings in the central and western Witwatersrand basin in Gauteng province. The company was founded in 1895 and is headquartered in Rosebank, South Africa.
About China Natural Resources
China Natural Resources, Inc., through its subsidiaries, engages in the exploration of metal properties in the People's Republic of China. The company primarily explores for lead, silver, copper, and other metal deposits. It holds interest in the Moruogu Tong mine that covers an area of 10.43 square kilometers located in Bayannaoer City, Inner Mongolia. The company is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. is a subsidiary of Feishang Group Limited.
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