McChip Resources (CVE:MCS) and Ethos Gold (CVE:ECC) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Analyst Ratings
This is a breakdown of current ratings and target prices for McChip Resources and Ethos Gold, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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McChip Resources | 0 | 0 | 0 | 0 | N/A |
Ethos Gold | 0 | 0 | 0 | 0 | N/A |
Earnings & Valuation
This table compares McChip Resources and Ethos Gold's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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McChip Resources | C$2.07 million | 2.35 | C$1.36 million | C$0.24 | 3.57 |
Ethos Gold | N/A | N/A | N/A | C($0.09) | -2.26 |
McChip Resources has higher revenue and earnings than Ethos Gold. Ethos Gold is trading at a lower price-to-earnings ratio than McChip Resources, indicating that it is currently the more affordable of the two stocks.
Dividends
McChip Resources pays an annual dividend of C$0.02 per share and has a dividend yield of 2.3%. Ethos Gold pays an annual dividend of C$2.40 per share and has a dividend yield of 1,142.9%. McChip Resources pays out 8.3% of its earnings in the form of a dividend. Ethos Gold pays out -2,580.6% 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. Ethos Gold is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares McChip Resources and Ethos Gold's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
McChip Resources | N/A | N/A | N/A |
Ethos Gold | N/A | N/A | N/A |
Summary
McChip Resources beats Ethos Gold on 3 of the 5 factors compared between the two stocks.