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

Profitability

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

Net Margins Return on Equity Return on Assets
Pretium Resources 10.43% 12.29% 6.53%
Pelangio Exploration N/A -537.60% -143.58%

Analyst Ratings

This is a breakdown of recent ratings for Pretium Resources and Pelangio Exploration, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 1 6 0 2.86
Pelangio Exploration 0 0 0 0 N/A

Pretium Resources presently has a consensus price target of $16.30, suggesting a potential upside of 61.71%. Given Pretium Resources’ higher probable upside, equities analysts clearly believe Pretium Resources is more favorable than Pelangio Exploration.

Risk and Volatility

Pretium Resources has a beta of -0.34, meaning that its share price is 134% less volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Valuation & Earnings

This table compares Pretium Resources and Pelangio Exploration’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pretium Resources $454.56 million 4.09 $36.62 million $0.54 18.67
Pelangio Exploration N/A N/A -$1.06 million N/A N/A

Pretium Resources has higher revenue and earnings than Pelangio Exploration.

Institutional & Insider Ownership

51.0% of Pretium Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pretium Resources beats Pelangio Exploration on 8 of the 9 factors compared between the two stocks.

Pretium Resources Company Profile

Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. The company primarily explores for gold, silver, and copper deposits. Its principal project is the Brucejack project that consists of 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia. The company was incorporated in 2010 and is headquartered in Vancouver, Canada.

Pelangio Exploration Company Profile

Pelangio Exploration, Inc. is a junior gold exploration company, which engages in the acquisition and exploration of early stage or undervalued exploration prospects located in world-class gold belts. Its projects include Obuasi, Manfo, and Akroma properties in Ghana; Birch Lake and Poirier Gold properties in Canada. The company was founded on February 27, 2008 and is headquartered in Toronto, Canada.

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