A-Mark Precious Metals (NASDAQ: AMRK) and Turquoise Hill Resources (NYSE:TRQ) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares A-Mark Precious Metals and Turquoise Hill Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A-Mark Precious Metals 0.09% 10.08% 1.40%
Turquoise Hill Resources 14.20% 1.60% 1.01%

Volatility & Risk

A-Mark Precious Metals has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Turquoise Hill Resources has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Institutional & Insider Ownership

19.9% of A-Mark Precious Metals shares are owned by institutional investors. Comparatively, 32.9% of Turquoise Hill Resources shares are owned by institutional investors. 43.0% of A-Mark Precious Metals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for A-Mark Precious Metals and Turquoise Hill Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A-Mark Precious Metals 0 1 1 1 3.00
Turquoise Hill Resources 0 3 2 0 2.40

A-Mark Precious Metals presently has a consensus price target of $21.53, suggesting a potential upside of 20.52%. Turquoise Hill Resources has a consensus price target of $5.00, suggesting a potential upside of 51.52%. Given Turquoise Hill Resources’ higher possible upside, analysts plainly believe Turquoise Hill Resources is more favorable than A-Mark Precious Metals.

Valuation & Earnings

This table compares A-Mark Precious Metals and Turquoise Hill Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
A-Mark Precious Metals $7.40 billion 0.02 $10.53 million $0.97 18.41
Turquoise Hill Resources $892.02 million 7.44 $159.41 million $0.06 55.01

Turquoise Hill Resources has higher revenue, but lower earnings than A-Mark Precious Metals. A-Mark Precious Metals is trading at a lower price-to-earnings ratio than Turquoise Hill Resources, indicating that it is currently the more affordable of the two stocks.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. Turquoise Hill Resources does not pay a dividend. A-Mark Precious Metals pays out 33.0% of its earnings in the form of a dividend.

Summary

Turquoise Hill Resources beats A-Mark Precious Metals on 9 of the 17 factors compared between the two stocks.

A-Mark Precious Metals Company Profile

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

Turquoise Hill Resources Company Profile

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

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