New Found Gold (NYSE:NFGC – Get Free Report) and Seabridge Gold (NYSE:SA – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Institutional and Insider Ownership
3.4% of New Found Gold shares are held by institutional investors. Comparatively, 34.9% of Seabridge Gold shares are held by institutional investors. 12.8% of Seabridge Gold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares New Found Gold and Seabridge Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Found Gold | N/A | -123.65% | -99.05% |
| Seabridge Gold | N/A | -5.45% | -3.01% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.30) | -10.50 |
| Seabridge Gold | N/A | N/A | -$21.68 million | ($0.36) | -41.25 |
Seabridge Gold is trading at a lower price-to-earnings ratio than New Found Gold, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
New Found Gold has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for New Found Gold and Seabridge Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Found Gold | 0 | 0 | 2 | 0 | 3.00 |
| Seabridge Gold | 0 | 0 | 1 | 0 | 3.00 |
New Found Gold currently has a consensus target price of $9.00, suggesting a potential upside of 185.71%. Given New Found Gold’s higher possible upside, equities analysts clearly believe New Found Gold is more favorable than Seabridge Gold.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.
About Seabridge Gold
Seabridge Gold Inc., together with its subsidiaries, engages in the acquisition and exploration of gold properties in North America. The company also explores for gold, copper, silver, and molybdenum deposits. The company was formerly known as Seabridge Resources Inc. and changed its name to Seabridge Gold Inc. in June 2002. Seabridge Gold Inc. was incorporated in 1979 and is based in Toronto, Canada.
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