New Gold (NYSE:NGD – Get Free Report) and Atlas Copco (OTCMKTS:ATLRF – Get Free Report) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Valuation and Earnings
This table compares New Gold and Atlas Copco”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 | $1.24 billion | 6.01 | -$64.50 million | $0.32 | 29.47 |
| Atlas Copco | $4.26 million | 1,509.69 | -$72.56 million | N/A | N/A |
Profitability
This table compares New Gold and Atlas Copco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Gold | 11.10% | 13.70% | 6.31% |
| Atlas Copco | N/A | N/A | -51.79% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for New Gold and Atlas Copco, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Gold | 0 | 1 | 5 | 2 | 3.13 |
| Atlas Copco | 0 | 0 | 0 | 0 | 0.00 |
New Gold presently has a consensus target price of $8.18, indicating a potential downside of 13.31%. Given New Gold’s stronger consensus rating and higher possible upside, research analysts plainly believe New Gold is more favorable than Atlas Copco.
Insider & Institutional Ownership
42.8% of New Gold shares are owned by institutional investors. 0.2% of New Gold shares are owned by company insiders. Comparatively, 7.5% of Atlas Copco shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
New Gold has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Atlas Copco has a beta of -0.45, indicating that its share price is 145% less volatile than the S&P 500.
Summary
New Gold beats Atlas Copco on 11 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 Atlas Copco
Atlas Copco AB, together with its subsidiaries, provides productivity solutions. The company operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions primarily for use in the manufacturing and process industries. The company also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; and turbomolecular and cryogenic pumps, as well as abatement and integrated systems for the semiconductor and scientific, chemical process, food packaging, and paper handling industries. In addition, it offers pneumatic, hydraulic, and electric assembly tools, as well as control systems and associated software for safety-critical tightening; self-pierce riveting tools, dispensing equipment for adhesives and sealants, and flow drill fastening equipment; material removal tools, drills, and other pneumatic products; and machine vision solutions for customers in the automotive and general industries. Further, the company provides portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, oil and gas, construction, manufacturing, exploration drilling, and demolition industries, as well as specialty rental services. It operates in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. The company was founded in 1873 and is headquartered in Nacka, Sweden.
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