Pershing Gold Corporation (NASDAQ: PGLC) and Klondex Mines (NASDAQ:KLDX) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitabiliy, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Pershing Gold Corporation and Klondex Mines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pershing Gold Corporation N/A -40.82% -38.78%
Klondex Mines N/A N/A N/A

Institutional & Insider Ownership

19.5% of Pershing Gold Corporation shares are owned by institutional investors. 39.8% of Pershing Gold Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Pershing Gold Corporation and Klondex Mines, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pershing Gold Corporation 0 0 3 0 3.00
Klondex Mines 0 3 1 0 2.25

Pershing Gold Corporation presently has a consensus target price of $7.88, indicating a potential upside of 179.26%. Klondex Mines has a consensus target price of $6.00, indicating a potential upside of 77.51%. Given Pershing Gold Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Pershing Gold Corporation is more favorable than Klondex Mines.

Earnings and Valuation

This table compares Pershing Gold Corporation and Klondex Mines’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pershing Gold Corporation N/A N/A -$14.69 million ($0.59) -4.78
Klondex Mines $203.44 million 2.95 $38.62 million N/A N/A

Klondex Mines has higher revenue and earnings than Pershing Gold Corporation.

Summary

Pershing Gold Corporation beats Klondex Mines on 5 of the 9 factors compared between the two stocks.

About Pershing Gold Corporation

Pershing Gold Corporation is a gold and precious metals exploration company. The Company focuses on exploration, development and mining opportunities in Nevada. The Company is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. The Company operates its business directly and also through its subsidiary, Gold Acquisition Corp. Gold Acquisition Corp. owns and is engaged in conducting exploration on the Relief Canyon Mine property in northwestern Nevada. The Company is engaged in conducting exploration on the Relief Canyon expansion properties. The Relief Canyon Mine includes approximately three open pit mines, heap leach pads consisting of approximately six cells, approximately two solution ponds and a cement block constructed adsorption desorption-recovery (ADR) solution processing circuit. The Pershing Pass property includes approximately 490 lode mining claims. The Company has not generated any revenues.

About Klondex Mines

Klondex Mines Ltd is a Canada-based gold and silver mining company. The Company focuses on exploration, development and production of over two gold and silver projects in north central Nevada, being the Fire Creek mine located in Lander County, Nevada, the Midas mine and ore milling facility located in Nevada. Its segments include Fire Creek, Midas, True North, and Corporate and other. Its over 1,000 tons per day milling facility processes mineralized materials from the Midas Mine and the Fire Creek Mine. The Midas Mine is a gold-silver vein deposit located a mile from the town of Midas, Nevada. It also owns an underground mine project located in Manitoba, Canada, which includes the Rice Lake Mine and Mill complex, and early-stage exploration properties located in the State of Nevada, the United States, and Manitoba and Ontario, Canada. The Company’s milling and processing facilities are located at Midas process ore from both Midas and Fire Creek in the State of Nevada.

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