Geodrill (TSE:GEO) and Abitibi Royalties (CVE:RZZ) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Earnings & Valuation
This table compares Geodrill and Abitibi Royalties' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Geodrill | C$82.44 million | 0.96 | C$9.39 million | C$0.21 | 8.44 |
Abitibi Royalties | C$1.26 million | 227.69 | C$21.08 million | C$1.69 | 13.61 |
Abitibi Royalties has lower revenue, but higher earnings than Geodrill. Geodrill is trading at a lower price-to-earnings ratio than Abitibi Royalties, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Geodrill and Abitibi Royalties' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Geodrill | N/A | N/A | N/A |
Abitibi Royalties | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Geodrill and Abitibi Royalties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Geodrill | 0 | 0 | 1 | 0 | 3.00 |
Abitibi Royalties | 0 | 0 | 0 | 0 | N/A |
Geodrill currently has a consensus target price of C$3.00, indicating a potential upside of 67.60%. Given Geodrill's higher possible upside, research analysts plainly believe Geodrill is more favorable than Abitibi Royalties.
Dividends
Geodrill pays an annual dividend of C$0.02 per share and has a dividend yield of 1.1%. Abitibi Royalties pays an annual dividend of C$0.15 per share and has a dividend yield of 0.6%. Geodrill pays out 9.4% of its earnings in the form of a dividend. Abitibi Royalties pays out 8.7% 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.
Summary
Abitibi Royalties beats Geodrill on 5 of the 9 factors compared between the two stocks.