Quantum Materials (OTCMKTS:QTMM) & New Gold (NYSE:NGD) Critical Comparison

New Gold (NYSE:NGD) and Quantum Materials (OTCMKTS:QTMM) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Volatility and Risk

New Gold has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Quantum Materials has a beta of 2.99, indicating that its share price is 199% more volatile than the S&P 500.

Insider and Institutional Ownership

42.8% of New Gold shares are owned by institutional investors. Comparatively, 0.1% of Quantum Materials shares are owned by institutional investors. 0.2% of New Gold shares are owned by insiders. Comparatively, 12.8% of Quantum Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares New Gold and Quantum Materials”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Gold	$1.24 billion	4.48	-$64.50 million	$0.32	21.97
Quantum Materials	N/A	N/A	-$8.96 million	N/A	N/A

Quantum Materials has lower revenue, but higher earnings than New Gold.

Profitability

This table compares New Gold and Quantum Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Gold	11.10%	13.70%	6.31%
Quantum Materials	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for New Gold and Quantum Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Gold	0	2	4	1	2.86
Quantum Materials	0	0	0	0	0.00

New Gold currently has a consensus price target of $6.63, indicating a potential downside of 5.64%. Given New Gold’s stronger consensus rating and higher possible upside, analysts plainly believe New Gold is more favorable than Quantum Materials.

Summary

New Gold beats Quantum Materials on 9 of the 12 factors compared between the two stocks.

About New Gold

New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.

About Quantum Materials

Quantum Materials Corp. engages in the design, development, production and supply of nanomaterials, including quantum dots, tetrapod quantum dots, and other nanoparticles for a range of applications in televisions, displays and other optoelectronics, photovoltaics, solid state lighting, life sciences, security ink, battery, and sensor sectors of the market. The company was founded by Stephen Squires on January 9, 2007 and is headquartered in San Marcos, TX.