Critical Review: Seabridge Gold (NYSE:SA) vs. Gold Reserve (NYSE:GDRZF)

Seabridge Gold (NYSE:SA) and Gold Reserve (OTCMKTS:GDRZF) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Volatility and Risk

Seabridge Gold has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Gold Reserve has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Seabridge Gold and Gold Reserve, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seabridge Gold 0 0 1 0 3.00
Gold Reserve 0 0 0 0 N/A

Seabridge Gold presently has a consensus price target of $22.00, indicating a potential upside of 54.17%. Given Seabridge Gold’s higher possible upside, analysts clearly believe Seabridge Gold is more favorable than Gold Reserve.

Valuation and Earnings

This table compares Seabridge Gold and Gold Reserve’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seabridge Gold N/A N/A -$15.38 million ($0.26) -54.88
Gold Reserve $51.57 million 3.33 $41.86 million N/A N/A

Gold Reserve has higher revenue and earnings than Seabridge Gold.

Profitability

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

Net Margins Return on Equity Return on Assets
Seabridge Gold N/A -3.51% -3.18%
Gold Reserve N/A -19.14% -17.91%

Dividends

Gold Reserve pays an annual dividend of $0.76 per share and has a dividend yield of 42.2%. Seabridge Gold does not pay a dividend.

Insider & Institutional Ownership

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

Seabridge Gold Company Profile

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.

Gold Reserve Company Profile

Gold Reserve Inc., an exploration stage company, acquires, explores, and develops mineral properties. The company primarily focuses on the Siembra Minera Project, an open pit gold-copper mining project located in Bolivar, Venezuela. It also has an interest in the LMS Gold Project in Alaska. The company was founded in 1956 and is based in Spokane, Washington.

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