Lucara Diamond (TSE:LUC) and Garibaldi Resources (CVE:GGI) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Analyst Ratings
This is a summary of recent recommendations and price targets for Lucara Diamond and Garibaldi Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Lucara Diamond | 0 | 0 | 0 | 0 | N/A |
Garibaldi Resources | 0 | 0 | 0 | 0 | N/A |
Lucara Diamond currently has a consensus target price of C$0.70, suggesting a potential downside of 6.67%. Given Lucara Diamond's higher probable upside, equities research analysts clearly believe Lucara Diamond is more favorable than Garibaldi Resources.
Earnings and Valuation
This table compares Lucara Diamond and Garibaldi Resources' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Lucara Diamond | C$125.26 million | 2.38 | C$-27,791,750.00 | C($0.07) | -10.71 |
Garibaldi Resources | N/A | N/A | N/A | C($0.04) | -12.50 |
Garibaldi Resources has lower revenue, but higher earnings than Lucara Diamond. Garibaldi Resources is trading at a lower price-to-earnings ratio than Lucara Diamond, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lucara Diamond and Garibaldi Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Lucara Diamond | N/A | N/A | N/A |
Garibaldi Resources | N/A | N/A | N/A |
Summary
Lucara Diamond beats Garibaldi Resources on 3 of the 4 factors compared between the two stocks.