Pretium Resources (NYSE: PVG) and Centamin (OTCMKTS:CELTF) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for Pretium Resources and Centamin, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 2 6 0 2.75
Centamin 0 0 0 0 N/A

Pretium Resources currently has a consensus target price of $14.00, suggesting a potential upside of 94.99%. Given Pretium Resources’ higher possible upside, research analysts plainly believe Pretium Resources is more favorable than Centamin.

Dividends

Centamin pays an annual dividend of $0.20 per share and has a dividend yield of 12.8%. Pretium Resources does not pay a dividend.

Risk & Volatility

Pretium Resources has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, Centamin has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Insider and Institutional Ownership

51.0% of Pretium Resources shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Pretium Resources and Centamin’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pretium Resources $177.93 million 7.36 -$16.45 million $0.10 71.80
Centamin $675.51 million 2.67 $222.03 million N/A N/A

Centamin has higher revenue and earnings than Pretium Resources.

Profitability

This table compares Pretium Resources and Centamin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pretium Resources N/A 2.88% 1.46%
Centamin 23.96% 14.50% 13.87%

Summary

Centamin beats Pretium Resources on 7 of the 12 factors compared between the two stocks.

About Pretium Resources

Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. It primarily explores for gold, silver, and copper deposits. The company's principal project is the Brucejack project comprising 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia. It also owns interest in the Snowfield project consisting of 1 mineral claim covering an area of 1,217 hectares located in northern British Columbia. Pretium Resources Inc. was incorporated in 2010 and is headquartered in Vancouver, Canada.

About Centamin

Centamin plc, together with its subsidiaries, engages in the exploration, mining, and development of precious metals in Egypt, Burkina Faso, Côte d’Ivoire, United Kingdom, and Australia. The company explores for gold ore deposits. It primarily holds interest in the Sukari Gold Mine project, which covers an area of 160 square kilometers located in the south-easterly region of the Eastern Desert, Egypt. The company was incorporated in 1970 and is based in St Helier, the Channel Islands.

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