China Gold International Resources (TSE:CGG) and Talon Metals (TSE:TLO) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Profitability
This table compares China Gold International Resources and Talon Metals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
China Gold International Resources | N/A | N/A | N/A |
Talon Metals | N/A | N/A | N/A |
Dividends
China Gold International Resources pays an annual dividend of C$1.38 per share and has a dividend yield of 37.7%. Talon Metals pays an annual dividend of C$1.78 per share and has a dividend yield of 265.7%. China Gold International Resources pays out 388.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Talon Metals pays out -35,600.0% of its earnings in the form of a dividend. Talon Metals is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares China Gold International Resources and Talon Metals' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
China Gold International Resources | C$864.03 million | 1.68 | C$140.73 million | C$0.36 | 10.31 |
Talon Metals | C$491.00 | 929,995.48 | C$-3,407,670.00 | C($0.01) | -134.00 |
China Gold International Resources has higher revenue and earnings than Talon Metals. Talon Metals is trading at a lower price-to-earnings ratio than China Gold International Resources, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for China Gold International Resources and Talon Metals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
China Gold International Resources | 0 | 0 | 1 | 0 | 3.00 |
Talon Metals | 0 | 0 | 0 | 0 | N/A |
China Gold International Resources currently has a consensus target price of C$3.15, indicating a potential downside of 13.93%. Given China Gold International Resources' higher possible upside, equities research analysts plainly believe China Gold International Resources is more favorable than Talon Metals.
Summary
China Gold International Resources beats Talon Metals on 6 of the 9 factors compared between the two stocks.