New Age Metals (OTCMKTS:NMTLF – Get Free Report) and NioCorp Developments (NASDAQ:NB – Get Free Report) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk and Volatility
New Age Metals has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.39, meaning that its stock price is 139% less volatile than the S&P 500.
Earnings and Valuation
This table compares New Age Metals and NioCorp Developments”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
New Age Metals | N/A | N/A | -$490,000.00 | N/A | N/A |
NioCorp Developments | N/A | N/A | -$11.44 million | ($0.85) | -1.64 |
Institutional & Insider Ownership
4.0% of NioCorp Developments shares are held by institutional investors. 18.7% of NioCorp Developments shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares New Age Metals and NioCorp Developments’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
New Age Metals | N/A | -5.47% | -5.13% |
NioCorp Developments | N/A | -8,973.12% | -206.20% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for New Age Metals and NioCorp Developments, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
New Age Metals | 0 | 0 | 0 | 0 | 0.00 |
NioCorp Developments | 0 | 0 | 1 | 0 | 3.00 |
NioCorp Developments has a consensus target price of $8.50, indicating a potential upside of 511.51%. Given NioCorp Developments’ stronger consensus rating and higher possible upside, analysts plainly believe NioCorp Developments is more favorable than New Age Metals.
Summary
NioCorp Developments beats New Age Metals on 5 of the 9 factors compared between the two stocks.
About New Age Metals
New Age Metals Inc., a mineral exploration company, engages in the acquisition, exploration, and development of platinum group metals (PGMs), and precious and base metal properties in Canada. The company explores for rhodium, palladium, platinum, gold, nickel, copper, and lithium deposits. It holds interests in the River Valley PGE project located in the Dana and Pardo townships of Northern Ontario; the Genesis PGE project located in south central Alaska; and lithium projects situated to the northeast of Winnipeg, Manitoba. New Age Metals Inc. was incorporated in 1996 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.
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