Platinum Group Metals (NYSE:PLG – Get Rating) and NextSource Materials (OTCMKTS:NSRCF – Get Rating) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Risk and Volatility
Platinum Group Metals has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, NextSource Materials has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Platinum Group Metals and NextSource Materials, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Platinum Group Metals||0||0||0||0||N/A|
NextSource Materials has a consensus target price of $6.00, indicating a potential upside of 226.09%. Given NextSource Materials’ higher possible upside, analysts plainly believe NextSource Materials is more favorable than Platinum Group Metals.
Valuation & Earnings
This table compares Platinum Group Metals and NextSource Materials’ gross 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||-$13.06 million||($0.16)||-12.63|
|NextSource Materials||N/A||N/A||-$41.96 million||($0.57)||-3.23|
Platinum Group Metals is trading at a lower price-to-earnings ratio than NextSource Materials, indicating that it is currently the more affordable of the two stocks.
This table compares Platinum Group Metals and NextSource Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Platinum Group Metals||N/A||-42.26%||-23.67%|
Institutional and Insider Ownership
39.2% of Platinum Group Metals shares are owned by institutional investors. Comparatively, 0.4% of NextSource Materials shares are owned by institutional investors. 4.6% of NextSource Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Platinum Group Metals Company Profile (Get Rating)
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 Western Bushveld complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was incorporated in 2000 and is headquartered in Vancouver, Canada.
NextSource Materials Company Profile (Get Rating)
NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its principal mineral property is the Molo graphite mine that includes 2,119 permits covering an area of 827.7 square kilometers located in Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. and changed its name to NextSource Materials Inc. in April 2017. NextSource Materials Inc. was founded in 2004 and is headquartered in Toronto, Canada.
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