Barrick Gold (NYSE:GOLD) and Seabridge Gold (NYSE:SA) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Volatility and Risk

Barrick Gold has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Profitability

This table compares Barrick Gold and Seabridge Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barrick Gold -21.10% 3.42% 1.62%
Seabridge Gold N/A -3.51% -3.18%

Earnings and Valuation

This table compares Barrick Gold and Seabridge Gold’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barrick Gold $7.24 billion 3.99 -$1.55 billion $0.35 47.17
Seabridge Gold N/A N/A -$15.38 million ($0.26) -53.23

Seabridge Gold has lower revenue, but higher earnings than Barrick Gold. Seabridge Gold is trading at a lower price-to-earnings ratio than Barrick Gold, indicating that it is currently the more affordable of the two stocks.

Dividends

Barrick Gold pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. Seabridge Gold does not pay a dividend. Barrick Gold pays out 45.7% of its earnings in the form of a dividend. Barrick Gold has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of current recommendations for Barrick Gold and Seabridge Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barrick Gold 0 8 6 0 2.43
Seabridge Gold 0 0 2 0 3.00

Barrick Gold presently has a consensus price target of $15.29, indicating a potential downside of 7.38%. Seabridge Gold has a consensus price target of $22.00, indicating a potential upside of 58.96%. Given Seabridge Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Seabridge Gold is more favorable than Barrick Gold.

Insider and Institutional Ownership

58.9% of Barrick Gold shares are held by institutional investors. Comparatively, 23.1% of Seabridge Gold shares are held by institutional investors. 12.8% of Seabridge Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Barrick Gold beats Seabridge Gold on 9 of the 16 factors compared between the two stocks.

About Barrick Gold

Barrick Gold Corporation engages in the exploration and development of mineral properties. It primarily explores for gold and copper deposits. The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zaldívar, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia. It also owns gold mines and exploration properties in Africa; and gold projects located in South America and North America. Barrick Gold Corporation has strategic cooperation agreement with Shandong Gold Group Co. Ltd. The company was founded in 1983 and is headquartered in Toronto, Canada.

About Seabridge Gold

Seabridge Gold Inc., a development stage company, together with its subsidiaries, engages in the acquisition and exploration of gold properties located in North America. The company also explores for copper and silver ores. It holds a 100% interest in various North American gold resource projects. The company's principal assets are the Kerr-Sulphurets-Mitchell and Iskut properties located near Stewart, British Columbia, Canada, as well as the Courageous Lake gold project located in Canada's Northwest Territories. The company was formerly known as Seabridge Resources Inc. and changed its name to Seabridge Gold Inc. in June 2002. Seabridge Gold Inc. was founded in 1979 and is based in Toronto, Canada.

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