Comparing Eldorado Gold (NYSE:EGO) & Largo (NYSE:LGO)

Eldorado Gold (NYSE:EGO) and Largo (NYSE:LGO) are both 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eldorado Gold	$1.82 billion	5.48	$507.26 million	$2.82	13.51
Largo	$127.06 million	0.39	-$30.34 million	($1.07)	-0.44

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

Profitability

This table compares Eldorado Gold and Largo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eldorado Gold	29.83%	10.91%	7.07%
Largo	-35.10%	-22.61%	-14.29%

Analyst Ratings

This is a summary of current recommendations and price targets for Eldorado Gold and Largo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eldorado Gold	0	7	6	2	2.67
Largo	0	0	2	0	3.00

Eldorado Gold currently has a consensus target price of $46.57, suggesting a potential upside of 22.21%. Largo has a consensus target price of $2.10, suggesting a potential upside of 342.48%. Given Largo’s stronger consensus rating and higher possible upside, analysts clearly believe Largo is more favorable than Eldorado Gold.

Institutional and Insider Ownership

69.6% of Eldorado Gold shares are held by institutional investors. Comparatively, 64.1% of Largo shares are held by institutional investors. 0.6% of Eldorado Gold shares are held by company insiders. Comparatively, 0.3% of Largo 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.

Risk and Volatility

Eldorado Gold has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Largo has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Summary

Eldorado Gold beats Largo on 12 of the 15 factors compared between the two stocks.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.

About Largo

Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and is headquartered in Toronto, Canada.