Head to Head Review: Amerigo Resources (OTCMKTS:ARREF) and NioCorp Developments (NASDAQ:NB)

Amerigo Resources (OTCMKTS:ARREF) and NioCorp Developments (NASDAQ:NB) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

4.0% of NioCorp Developments shares are held by institutional investors. 19.3% of Amerigo Resources shares are held by company insiders. Comparatively, 19.1% of NioCorp Developments shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Amerigo Resources and NioCorp Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amerigo Resources	11.23%	19.30%	10.27%
NioCorp Developments	N/A	-1,273.17%	-140.97%

Valuation & Earnings

This table compares Amerigo Resources and NioCorp Developments”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amerigo Resources	$157.46 million	1.30	$3.38 million	$0.13	9.58
NioCorp Developments	N/A	N/A	-$11.44 million	($0.77)	-3.23

Amerigo Resources has higher revenue and earnings than NioCorp Developments. NioCorp Developments is trading at a lower price-to-earnings ratio than Amerigo Resources, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Amerigo Resources has a beta of 2.55, meaning that its share price is 155% more volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.33, meaning that its share price is 133% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Amerigo Resources and NioCorp Developments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amerigo Resources	0	0	0	0	0.00
NioCorp Developments	0	0	2	0	3.00

NioCorp Developments has a consensus price target of $4.13, indicating a potential upside of 65.66%. Given NioCorp Developments’ stronger consensus rating and higher probable upside, analysts clearly believe NioCorp Developments is more favorable than Amerigo Resources.

Summary

Amerigo Resources beats NioCorp Developments on 9 of the 13 factors compared between the two stocks.

About Amerigo Resources

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., engages in the production and sale of copper and molybdenum concentrates from Codelco's El Teniente underground mine in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002. The company was incorporated in 1984 and is headquartered in Vancouver, Canada.

About NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.