Central African Gold Inc. (BANC.V) (CVE:BANC) and Rockwealth Resources (CVE:RWR) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Central African Gold Inc. (BANC.V) and Rockwealth Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Central African Gold Inc. (BANC.V) | 0 | 0 | 0 | 0 | N/A |
Rockwealth Resources | 0 | 0 | 0 | 0 | N/A |
Valuation and Earnings
This table compares Central African Gold Inc. (BANC.V) and Rockwealth Resources' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Central African Gold Inc. (BANC.V) | N/A | N/A | N/A | C($0.35) | -0.91 |
Rockwealth Resources | N/A | N/A | N/A | C($0.06) | -7.80 |
Rockwealth Resources is trading at a lower price-to-earnings ratio than Central African Gold Inc. (BANC.V), indicating that it is currently the more affordable of the two stocks.
Dividends
Central African Gold Inc. (BANC.V) pays an annual dividend of C$0.52 per share and has a dividend yield of 162.5%. Rockwealth Resources pays an annual dividend of C$2.77 per share and has a dividend yield of 602.2%. Central African Gold Inc. (BANC.V) pays out -147.3% of its earnings in the form of a dividend. Rockwealth Resources pays out -4,694.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rockwealth Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Central African Gold Inc. (BANC.V) and Rockwealth Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Central African Gold Inc. (BANC.V) | N/A | N/A | N/A |
Rockwealth Resources | N/A | N/A | N/A |
Summary
Rockwealth Resources beats Central African Gold Inc. (BANC.V) on 3 of the 4 factors compared between the two stocks.