New Found Gold (NYSE:NFGC) and Rare Element Resources (OTCMKTS:REEMF) Head to Head Review

New Found Gold (NYSE:NFGC) and Rare Element Resources (OTCMKTS:REEMF) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Earnings and Valuation

This table compares New Found Gold and Rare Element Resources’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Found Gold	N/A	N/A	-$59.18 million	($0.33)	-10.97
Rare Element Resources	N/A	N/A	-$9.00 million	($0.03)	-6.23

New Found Gold is trading at a lower price-to-earnings ratio than Rare Element Resources, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

3.4% of New Found Gold shares are held by institutional investors. 3.2% of Rare Element Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares New Found Gold and Rare Element Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Found Gold	N/A	-135.56%	-105.99%
Rare Element Resources	N/A	-80.15%	-67.19%

Risk & Volatility

New Found Gold has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Rare Element Resources has a beta of -0.44, indicating that its stock price is 144% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for New Found Gold and Rare Element Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Found Gold	0	0	2	0	3.00
Rare Element Resources	0	0	0	0	N/A

New Found Gold presently has a consensus price target of $9.00, indicating a potential upside of 148.62%. Given New Found Gold’s higher probable upside, analysts plainly believe New Found Gold is more favorable than Rare Element Resources.

Summary

Rare Element Resources beats New Found Gold on 6 of the 10 factors compared between the two stocks.

About New Found Gold

New Found Gold Corp., a mineral exploration company, engages in the identification, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. The company primarily explores for gold deposit. It holds 100% interests in the Queensway project that includes 94 mineral licenses and 6,649 claims covering an area of 166,225 hectares of land located near Gander, Newfoundland; and the Lucky Strike project comprising 11,684 hectares located in Kirkland Lake, Ontario. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.

About Rare Element Resources

Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.