Financial Comparison: Metals Acquisition (NYSE:MTAL) and New Gold (NYSE:NGD)

New Gold (NYSE:NGD) and Metals Acquisition (NYSE:MTAL) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Institutional & Insider Ownership

42.8% of New Gold shares are owned by institutional investors. Comparatively, 87.5% of Metals Acquisition shares are owned by institutional investors. 0.2% of New Gold shares are owned by insiders. Comparatively, 1.8% of Metals Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares New Gold and Metals Acquisition”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Gold	$861.50 million	2.53	-$64.50 million	$0.02	138.00
Metals Acquisition	$159.00 million	5.84	-$144.55 million	N/A	N/A

New Gold has higher revenue and earnings than Metals Acquisition.

Analyst Ratings

This is a summary of current ratings for New Gold and Metals Acquisition, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Gold	0	2	3	2	3.00
Metals Acquisition	0	1	2	0	2.67

New Gold currently has a consensus price target of $3.08, indicating a potential upside of 11.59%. Metals Acquisition has a consensus price target of $15.00, indicating a potential upside of 19.71%. Given Metals Acquisition’s higher probable upside, analysts plainly believe Metals Acquisition is more favorable than New Gold.

Risk & Volatility

New Gold has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Metals Acquisition has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Profitability

This table compares New Gold and Metals Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Gold	2.33%	9.38%	3.87%
Metals Acquisition	N/A	N/A	N/A

Summary

New Gold beats Metals Acquisition on 9 of the 13 factors compared between the two stocks.

About New Gold

New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.

About Metals Acquisition

Metals Acquisition Limited focuses on mining and production of copper and silver. It operates the CSA copper mine in Cobar, Australia. The company was incorporated in 2022 and is headquartered in Saint Helier, Jersey.