Medgold Resources (CVE:MED) and Nicola Mining (CVE:NIM) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Medgold Resources and Nicola Mining's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Medgold Resources | N/A | N/A | N/A |
Nicola Mining | N/A | N/A | N/A |
Earnings & Valuation
This table compares Medgold Resources and Nicola Mining's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Medgold Resources | N/A | N/A | N/A | C($0.01) | -3.21 |
Nicola Mining | N/A | N/A | N/A | C($0.01) | -10.45 |
Nicola Mining is trading at a lower price-to-earnings ratio than Medgold Resources, indicating that it is currently the more affordable of the two stocks.
Dividends
Medgold Resources pays an annual dividend of C$1.92 per share and has a dividend yield of 4,266.7%. Nicola Mining pays an annual dividend of C$0.31 per share and has a dividend yield of 269.6%. Medgold Resources pays out -13,714.3% of its earnings in the form of a dividend. Nicola Mining pays out -2,818.2% 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. Medgold Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Medgold Resources and Nicola Mining, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Medgold Resources | 0 | 0 | 0 | 0 | N/A |
Nicola Mining | 0 | 0 | 0 | 0 | N/A |
Summary
Medgold Resources beats Nicola Mining on 3 of the 4 factors compared between the two stocks.