Largo Resources (TSE:LGO) and Lumina Gold (CVE:LUM) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Analyst Ratings
This is a summary of current ratings and recommmendations for Largo Resources and Lumina Gold, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Largo Resources | 0 | 0 | 1 | 0 | 3.00 |
Lumina Gold | 0 | 0 | 1 | 1 | 3.50 |
Largo Resources presently has a consensus price target of C$2.65, indicating a potential upside of 35.20%. Lumina Gold has a consensus price target of C$1.70, indicating a potential upside of 115.19%. Given Lumina Gold's stronger consensus rating and higher possible upside, analysts clearly believe Lumina Gold is more favorable than Largo Resources.
Earnings and Valuation
This table compares Largo Resources and Lumina Gold's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Largo Resources | C$103.52 million | 1.07 | C$-679,776.00 | C($0.01) | -163.33 |
Lumina Gold | N/A | N/A | N/A | C($0.03) | -28.21 |
Lumina Gold has lower revenue, but higher earnings than Largo Resources. Largo Resources is trading at a lower price-to-earnings ratio than Lumina Gold, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Largo Resources and Lumina Gold's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Largo Resources | N/A | N/A | N/A |
Lumina Gold | N/A | N/A | N/A |
Summary
Lumina Gold beats Largo Resources on 4 of the 6 factors compared between the two stocks.