Companies

Head-to-Head Comparison: Eldorado Gold (OTCMKTS:ELDXF) and Agnico Eagle Mines (NYSE:AEM)

Published December 8, 2024

Eldorado Gold (OTCMKTS:ELDXF) and Agnico Eagle Mines (NYSE:AEM) are notable companies in the mining industry. Investors often wonder which of these two is the better option for their portfolios. This article will compare them based on several important factors such as risk, dividends, valuation, analyst recommendations, institutional ownership, profitability, and earnings.

Valuation and Earnings

When looking at valuation and earnings, a comparison of key metrics provides insights into both companies’ performance. The following table outlines their gross revenue, price/sales ratio, net income, earnings per share (EPS), and price/earnings ratio.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Gold N/A N/A N/A N/A N/A
Agnico Eagle Mines $6.63 billion 6.33 $1.94 billion $2.00 41.80

Agnico Eagle Mines demonstrates higher revenue and earnings compared to Eldorado Gold, making it an appealing option for investors.

Profitability

Profitability is a crucial aspect for any investment decision. The following table compares the net margins, return on equity, and return on assets for both companies.

Net Margins Return on Equity Return on Assets
Eldorado Gold N/A N/A N/A
Agnico Eagle Mines 12.86% 8.88% 6.06%

In terms of profitability, Agnico Eagle Mines clearly stands ahead, showcasing stronger margins and returns.

Analyst Ratings

Analysts' opinions can guide investors in their decisions. Below is a summary of the recommendations for both Eldorado Gold and Agnico Eagle Mines.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Gold 0 0 0 0 0.00
Agnico Eagle Mines 0 1 7 0 2.88

The consensus target price for Agnico Eagle Mines is $86.78, indicating a potential upside of 3.81%. Analysts favor Agnico Eagle Mines, believing it to be a superior choice over Eldorado Gold.

Institutional and Insider Ownership

Examining ownership can reveal investor confidence in a company. Currently, 68.3% of Agnico Eagle Mines shares are held by institutional investors, while insiders hold only 0.5%. This level of institutional ownership suggests that larger investors expect growth from Agnico Eagle Mines.

Summary

In conclusion, Agnico Eagle Mines outperforms Eldorado Gold across all the categories analyzed. Investors may find Agnico Eagle Mines to be a stronger investment option.

About Eldorado Gold

Eldorado Gold Corporation is involved in the mining, exploration, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company focuses on gold production and owns several mines, including the Kisladag and Efemcukuru gold mines in Turkey, and the Lamaque gold mines in Canada. Founded in 1992, Eldorado Gold is headquartered in Vancouver, Canada.

About Agnico Eagle Mines

Agnico Eagle Mines Limited focuses on the exploration, development, and production of gold. Its operations are primarily in Canada, Australia, Finland, and Mexico. The company was incorporated in 1953 and is headquartered in Toronto, Canada.

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