Critical Contrast: Timberline Resources (TLRS) & Randgold Resources (GOLD)

Timberline Resources (OTCMKTS:TLRS) and Randgold Resources (NASDAQ:GOLD) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Timberline Resources and Randgold Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Timberline Resources N/A -10.33% -9.99%
Randgold Resources 21.82% 6.16% 5.75%

Analyst Ratings

This is a summary of recent ratings for Timberline Resources and Randgold Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timberline Resources 0 0 0 0 N/A
Randgold Resources 0 5 7 0 2.58

Randgold Resources has a consensus price target of $87.00, indicating a potential upside of 1.55%. Given Randgold Resources’ higher possible upside, analysts plainly believe Randgold Resources is more favorable than Timberline Resources.

Dividends

Randgold Resources pays an annual dividend of $1.98 per share and has a dividend yield of 2.3%. Timberline Resources does not pay a dividend. Randgold Resources pays out 67.8% of its earnings in the form of a dividend. Randgold Resources has increased its dividend for 3 consecutive years.

Risk & Volatility

Timberline Resources has a beta of -0.88, suggesting that its share price is 188% less volatile than the S&P 500. Comparatively, Randgold Resources has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500.

Institutional and Insider Ownership

0.2% of Timberline Resources shares are owned by institutional investors. Comparatively, 39.7% of Randgold Resources shares are owned by institutional investors. 10.6% of Timberline Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Timberline Resources and Randgold Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Timberline Resources N/A N/A -$1.64 million N/A N/A
Randgold Resources $1.28 billion 6.32 $278.01 million $2.92 29.34

Randgold Resources has higher revenue and earnings than Timberline Resources.

Summary

Randgold Resources beats Timberline Resources on 11 of the 13 factors compared between the two stocks.

About Timberline Resources

Timberline Resources Corporation engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold and silver deposits. It holds interests in the Eureka property covering an area of approximately 16,000 acres located in the southern part of the Eureka mining district of Eureka county, Nevada. The company also holds an option agreement to acquire a 100% interest in the Talapoosa project covering an area of approximately 14,870 acres located in the Lyon county, northwestern Nevada. The company was formerly known as Silver Crystal Mines, Inc. and changed its name to Timberline Resources Corporation in February 2004. Timberline Resources Corporation was incorporated in 1968 and is headquartered in Coeur d'Alene, Idaho.

About Randgold Resources

Randgold Resources Ltd. engages in the exploration and development of gold deposits. Its projects include the following: Loulo-Gounkoto complex, Morila gold mine, Tongon gold mine, Kibali gold mine, and Massawa. The company was founded in August 1995 and is headquartered in St. Helier, the United Kingdom.

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