Financial Analysis: Amerigo Resources (OTCMKTS:ARREF) versus International Tower Hill Mines (NYSE:THM)

Amerigo Resources (OTCMKTS:ARREFGet Rating) and International Tower Hill Mines (NYSE:THMGet Rating) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Amerigo Resources and International Tower Hill Mines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amerigo Resources 0 0 0 0 N/A
International Tower Hill Mines 0 0 0 0 N/A

Volatility and Risk

Amerigo Resources has a beta of 3.06, suggesting that its share price is 206% more volatile than the S&P 500. Comparatively, International Tower Hill Mines has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

55.0% of International Tower Hill Mines shares are owned by institutional investors. 2.6% of International Tower Hill Mines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Amerigo Resources and International Tower Hill Mines’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amerigo Resources $199.60 million 1.13 $39.82 million $0.22 5.86
International Tower Hill Mines N/A N/A -$5.98 million ($0.04) -23.67

Amerigo Resources has higher revenue and earnings than International Tower Hill Mines. International Tower Hill Mines is trading at a lower price-to-earnings ratio than Amerigo Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amerigo Resources and International Tower Hill Mines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amerigo Resources 19.96% 29.87% 15.21%
International Tower Hill Mines N/A -9.23% -9.13%

Summary

Amerigo Resources beats International Tower Hill Mines on 8 of the 10 factors compared between the two stocks.

About Amerigo Resources (Get Rating)

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., produces and sells copper and molybdenum concentrates from Codelco's El Teniente underground mine in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002. Amerigo Resources Ltd. was incorporated in 1984 and is headquartered in Vancouver, Canada.

About International Tower Hill Mines (Get Rating)

International Tower Hill Mines Ltd., a mineral exploration company, engages in the acquisition, exploration, and development of mineral properties. It holds or has rights to acquire interests in the Livengood gold project covering an area of approximately 19,546 hectares located to the northwest of Fairbanks, Alaska. The company was formerly known as Tower Hill Mines Ltd. and changed its name to International Tower Hill Mines Ltd. in March 1991. International Tower Hill Mines Ltd. was incorporated in 1978 and is headquartered in Vancouver, Canada.

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