Loncor Resources (TSE:LN) and Midas Gold Corp. (MAX.TO) (TSE:MAX) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.
Valuation and Earnings
This table compares Loncor Resources and Midas Gold Corp. (MAX.TO)'s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Loncor Resources | N/A | N/A | N/A | C($0.03) | -32.69 |
| Midas Gold Corp. (MAX.TO) | N/A | N/A | N/A | C($4.79) | -1.84 |
Loncor Resources is trading at a lower price-to-earnings ratio than Midas Gold Corp. (MAX.TO), indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Loncor Resources and Midas Gold Corp. (MAX.TO), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Loncor Resources | 0 | 0 | 0 | 1 | 4.00 |
| Midas Gold Corp. (MAX.TO) | 0 | 1 | 0 | 0 | 2.00 |
Loncor Resources presently has a consensus target price of C$1.18, indicating a potential upside of 38.82%. Midas Gold Corp. (MAX.TO) has a consensus target price of C$1.73, indicating a potential downside of 80.46%. Given Loncor Resources' stronger consensus rating and higher possible upside, equities analysts clearly believe Loncor Resources is more favorable than Midas Gold Corp. (MAX.TO).
Profitability
This table compares Loncor Resources and Midas Gold Corp. (MAX.TO)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Loncor Resources | N/A | N/A | N/A |
| Midas Gold Corp. (MAX.TO) | N/A | N/A | N/A |
Summary
Loncor Resources beats Midas Gold Corp. (MAX.TO) on 4 of the 5 factors compared between the two stocks.
