Pretium Resources (NYSE:PVG) and Anglo American (OTCMKTS:NGLOY) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.
Institutional & Insider Ownership
51.5% of Pretium Resources shares are held by institutional investors. Comparatively, 0.1% of Anglo American shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Pretium Resources and Anglo American’s 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||4.73||$36.62 million||$0.54||21.56|
|Anglo American||$27.61 billion||1.21||$3.55 billion||$1.28||9.26|
Anglo American has higher revenue and earnings than Pretium Resources. Anglo American is trading at a lower price-to-earnings ratio than Pretium Resources, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Pretium Resources and Anglo American, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pretium Resources presently has a consensus price target of $19.03, suggesting a potential upside of 62.07%. Given Pretium Resources’ higher probable upside, research analysts clearly believe Pretium Resources is more favorable than Anglo American.
Volatility & Risk
Pretium Resources has a beta of -0.5, suggesting that its stock price is 150% less volatile than the S&P 500. Comparatively, Anglo American has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
This table compares Pretium Resources and Anglo American’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Anglo American pays an annual dividend of $0.59 per share and has a dividend yield of 5.0%. Pretium Resources does not pay a dividend. Anglo American pays out 46.1% of its earnings in the form of a dividend.
Pretium Resources beats Anglo American on 8 of the 15 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.
Anglo American Company Profile
Anglo American plc, together with its subsidiaries, engages in exploring, mining, and processing various metals and minerals worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and iron; and nickel and manganese ores, as well as alloys. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.
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