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

Profitability

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

Net Margins Return on Equity Return on Assets
Pretium Resources N/A -2.05% -1.14%
BHP Billiton Limited N/A N/A N/A

Insider and Institutional Ownership

43.3% of Pretium Resources shares are held by institutional investors. Comparatively, 3.0% of BHP Billiton Limited shares are held by institutional investors. 0.0% of BHP Billiton Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Pretium Resources has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, BHP Billiton Limited has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Dividends

BHP Billiton Limited pays an annual dividend of $1.72 per share and has a dividend yield of 4.2%. Pretium Resources does not pay a dividend.

Earnings and Valuation

This table compares Pretium Resources and BHP Billiton Limited’s revenue, earnings per share 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) -75.69
BHP Billiton Limited $38.67 billion 2.82 $19.24 billion N/A N/A

BHP Billiton Limited has higher revenue and earnings than Pretium Resources.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Pretium Resources and BHP Billiton Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 0 7 0 3.00
BHP Billiton Limited 5 5 5 0 2.00

Pretium Resources currently has a consensus target price of $15.75, indicating a potential upside of 30.06%. BHP Billiton Limited has a consensus target price of $34.61, indicating a potential downside of 15.42%. Given Pretium Resources’ stronger consensus rating and higher possible upside, equities analysts clearly believe Pretium Resources is more favorable than BHP Billiton Limited.

Summary

BHP Billiton Limited beats Pretium Resources on 7 of the 11 factors compared between the two stocks.

About Pretium Resources

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.

About BHP Billiton Limited

BHP Billiton Limited is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.

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