Contrasting Namib Minerals (NASDAQ:NAMM) and Northern Dynasty Minerals (NASDAQ:NAK)

Namib Minerals (NASDAQ:NAMM) and Northern Dynasty Minerals (NASDAQ:NAK) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Insider & Institutional Ownership

59.5% of Namib Minerals shares are held by institutional investors. Comparatively, 10.6% of Northern Dynasty Minerals shares are held by institutional investors. 30.5% of Namib Minerals shares are held by insiders. Comparatively, 2.2% of Northern Dynasty Minerals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Namib Minerals and Northern Dynasty Minerals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Namib Minerals	1	0	0	0	1.00
Northern Dynasty Minerals	0	0	1	0	3.00

Northern Dynasty Minerals has a consensus price target of $2.50, indicating a potential upside of 14.68%. Given Northern Dynasty Minerals’ stronger consensus rating and higher possible upside, analysts clearly believe Northern Dynasty Minerals is more favorable than Namib Minerals.

Valuation and Earnings

This table compares Namib Minerals and Northern Dynasty Minerals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Namib Minerals	N/A	N/A	-$20.75 million	($1.27)	-0.77
Northern Dynasty Minerals	N/A	N/A	N/A	($0.12)	-18.17

Northern Dynasty Minerals is trading at a lower price-to-earnings ratio than Namib Minerals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Namib Minerals has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500. Comparatively, Northern Dynasty Minerals has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500.

Profitability

This table compares Namib Minerals and Northern Dynasty Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Namib Minerals	N/A	N/A	-56.66%
Northern Dynasty Minerals	N/A	N/A	N/A

Summary

Northern Dynasty Minerals beats Namib Minerals on 6 of the 9 factors compared between the two stocks.

About Namib Minerals

Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.

About Northern Dynasty Minerals

Northern Dynasty Minerals Ltd. engages in the exploration of mineral properties in the United States. Its principal mineral property is the Pebble Copper-Gold-Molybdenum-Silver-Rhenium project comprising 1,840 mineral claims that covers an area of approximately 274 square miles located in southwest Alaska, 17 miles from the villages of Iliamna and Newhalen, and approximately 200 miles southwest of the city of Anchorage. The company was formerly known as Northern Dynasty Explorations Ltd. and changed its name to Northern Dynasty Minerals Ltd. in October 1997. Northern Dynasty Minerals Ltd. was incorporated in 1983 and is headquartered in Vancouver, Canada.