Critical Contrast: Paradigm Oil and Gas (OTCMKTS:PDGO) & Gold Resource (NYSE:GORO)

Paradigm Oil and Gas (OTCMKTS:PDGO) and Gold Resource (NYSE:GORO) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares Paradigm Oil and Gas and Gold Resource”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paradigm Oil and Gas	N/A	N/A	-$1.66 million	N/A	N/A
Gold Resource	$59.38 million	1.35	-$16.02 million	($0.63)	-0.94

Paradigm Oil and Gas has higher earnings, but lower revenue than Gold Resource.

Profitability

This table compares Paradigm Oil and Gas and Gold Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paradigm Oil and Gas	N/A	N/A	N/A
Gold Resource	-61.31%	-35.25%	-16.15%

Insider and Institutional Ownership

18.4% of Gold Resource shares are held by institutional investors. 1.3% of Gold Resource shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Paradigm Oil and Gas has a beta of -0.16, indicating that its share price is 116% less volatile than the S&P 500. Comparatively, Gold Resource has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Paradigm Oil and Gas and Gold Resource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paradigm Oil and Gas	0	0	0	0	0.00
Gold Resource	0	0	1	0	3.00

Gold Resource has a consensus price target of $1.25, indicating a potential upside of 112.01%. Given Gold Resource’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Resource is more favorable than Paradigm Oil and Gas.

Summary

Gold Resource beats Paradigm Oil and Gas on 7 of the 11 factors compared between the two stocks.

About Paradigm Oil and Gas

Paradigm Oil and Gas, Inc., an exploration stage company, engages in the acquisition, exploration, development, and operation of oil and gas properties. It holds interests in 4 oil and gas leases covering approximately 934 net mineral acres located in the Wichita and Navarro counties of Texas. The company is headquartered in Indian Rocks Beach, Florida.

About Gold Resource

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.