Platinum Group Metals (NYSE:PLG – Get Free Report) and Northern Dynasty Minerals (NASDAQ:NAK – Get Free Report) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Volatility and Risk
Platinum Group Metals has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Northern Dynasty Minerals has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.
Institutional & Insider Ownership
16.3% of Platinum Group Metals shares are owned by institutional investors. Comparatively, 10.6% of Northern Dynasty Minerals shares are owned by institutional investors. 0.0% of Platinum Group Metals shares are owned by company insiders. Comparatively, 2.2% of Northern Dynasty Minerals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Platinum Group Metals | 0 | 0 | 0 | 0 | 0.00 |
| Northern Dynasty Minerals | 0 | 0 | 1 | 0 | 3.00 |
Northern Dynasty Minerals has a consensus price target of $2.50, indicating a potential downside of 0.40%. Given Northern Dynasty Minerals’ stronger consensus rating and higher possible upside, analysts plainly believe Northern Dynasty Minerals is more favorable than Platinum Group Metals.
Profitability
This table compares Platinum Group Metals and Northern Dynasty Minerals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Platinum Group Metals | N/A | -10.13% | -9.69% |
| Northern Dynasty Minerals | N/A | N/A | N/A |
Valuation & Earnings
This table compares Platinum Group Metals 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 | |
| Platinum Group Metals | N/A | N/A | -$4.61 million | ($0.04) | -86.00 |
| Northern Dynasty Minerals | N/A | N/A | N/A | ($0.12) | -20.92 |
Platinum Group Metals is trading at a lower price-to-earnings ratio than Northern Dynasty Minerals, indicating that it is currently the more affordable of the two stocks.
Summary
Northern Dynasty Minerals beats Platinum Group Metals on 7 of the 10 factors compared between the two stocks.
About Platinum Group Metals
Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.
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.
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