Critical Survey: Centerra Gold (NYSE:CGAU) & Theta Gold Mines (OTCMKTS:TGMGF)

Theta Gold Mines (OTCMKTS:TGMGF) and Centerra Gold (NYSE:CGAU) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Insider & Institutional Ownership

55.4% of Centerra Gold shares are owned by institutional investors. 0.2% of Centerra Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Theta Gold Mines and Centerra Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Theta Gold Mines	N/A	N/A	N/A	N/A	N/A
Centerra Gold	$1.27 billion	1.21	-$81.28 million	$0.27	26.56

Theta Gold Mines has higher earnings, but lower revenue than Centerra Gold.

Risk & Volatility

Theta Gold Mines has a beta of -3.22, indicating that its stock price is 422% less volatile than the S&P 500. Comparatively, Centerra Gold has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Theta Gold Mines and Centerra Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Theta Gold Mines	0	0	0	0	N/A
Centerra Gold	0	2	4	0	2.67

Centerra Gold has a consensus target price of $11.00, suggesting a potential upside of 53.42%. Given Centerra Gold’s higher possible upside, analysts clearly believe Centerra Gold is more favorable than Theta Gold Mines.

Profitability

This table compares Theta Gold Mines and Centerra Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Theta Gold Mines	N/A	N/A	N/A
Centerra Gold	10.68%	10.72%	8.07%

Summary

Centerra Gold beats Theta Gold Mines on 9 of the 9 factors compared between the two stocks.

About Theta Gold Mines

Theta Gold Mines Limited operates as a gold exploration and development company in South Africa. Its principal property is the Theta project located near the town of Pilgrim’s Rest in Mpumalanga Province. The company was formerly known as Stonewall Resources Limited and changed its name to Theta Gold Mines Limited in December 2018. The company was incorporated in 2008 and is based in Sydney, Australia.

About Centerra Gold

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey. The company was incorporated in 2002 and is based in Toronto, Canada.