Critical Review: Pretium Resources (PVG) and Turquoise Hill Resources (TRQ)
Pretium Resources (NYSE: PVG) and Turquoise Hill Resources (NYSE:TRQ) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Institutional & Insider Ownership
43.3% of Pretium Resources shares are owned by institutional investors. Comparatively, 32.9% of Turquoise Hill Resources shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Pretium Resources and Turquoise Hill Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turquoise Hill Resources||0||3||3||0||2.50|
Pretium Resources currently has a consensus price target of $15.58, suggesting a potential upside of 79.74%. Turquoise Hill Resources has a consensus price target of $5.00, suggesting a potential upside of 61.29%. Given Pretium Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Pretium Resources is more favorable than Turquoise Hill Resources.
This table compares Pretium Resources and Turquoise Hill Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turquoise Hill Resources||14.20%||1.60%||1.01%|
Volatility and Risk
Pretium Resources has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Turquoise Hill Resources has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.
Valuation & Earnings
This table compares Pretium Resources 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|
|Pretium Resources||N/A||N/A||-$16.23 million||($0.16)||-54.19|
|Turquoise Hill Resources||$892.02 million||6.99||$159.41 million||$0.06||51.68|
Turquoise Hill Resources has higher revenue and earnings than Pretium Resources. Pretium Resources 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.
Turquoise Hill Resources beats Pretium Resources on 7 of the 11 factors compared between the two stocks.
Pretium Resources Company Profile
Pretium Resources Inc. is a Canada-based exploration and development company. The Company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas. The Company’s projects include Brucejack Project and the Snowfield Project, both of which are located in northwestern British Columbia. The Company’s focus is on advancing the Brucejack Project to production as a high-grade gold underground mine. The Brucejack Project is the Company’s material mineral project, which is located approximately 950 kilometers northwest of Vancouver, British Columbia, and over 65 kilometers north-northwest of Stewart, British Columbia. The Brucejack Project consists of approximately four mining leases and over six mineral claims totaling approximately 3,050 hectares in area. The Snowfield Project borders the Brucejack Project to the north and consists of over one mineral claim with an area of approximately 1,267.43 hectares.
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).
Receive News & Ratings for Pretium Resources Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pretium Resources Inc. and related companies with MarketBeat.com's FREE daily email newsletter.