Financial Review: Thunder Mountain Gold (OTCMKTS:THMG) vs. Ero Copper (NYSE:ERO)

Thunder Mountain Gold (OTCMKTS:THMG) and Ero Copper (NYSE:ERO) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Valuation & Earnings

This table compares Thunder Mountain Gold and Ero Copper”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thunder Mountain Gold	$300,000.00	60.86	-$630,000.00	($0.01)	-30.00
Ero Copper	$470.26 million	3.33	-$68.47 million	$0.17	88.82

Thunder Mountain Gold has higher earnings, but lower revenue than Ero Copper. Thunder Mountain Gold is trading at a lower price-to-earnings ratio than Ero Copper, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Thunder Mountain Gold has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Ero Copper has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Thunder Mountain Gold and Ero Copper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thunder Mountain Gold	0	0	0	0	0.00
Ero Copper	0	3	8	2	2.92

Ero Copper has a consensus target price of $23.50, suggesting a potential upside of 55.63%. Given Ero Copper’s stronger consensus rating and higher possible upside, analysts plainly believe Ero Copper is more favorable than Thunder Mountain Gold.

Profitability

This table compares Thunder Mountain Gold and Ero Copper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thunder Mountain Gold	N/A	N/A	-133.75%
Ero Copper	3.87%	14.24%	6.44%

Insider and Institutional Ownership

0.0% of Thunder Mountain Gold shares are held by institutional investors. Comparatively, 71.3% of Ero Copper shares are held by institutional investors. 29.5% of Thunder Mountain Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ero Copper beats Thunder Mountain Gold on 12 of the 15 factors compared between the two stocks.

About Thunder Mountain Gold

Thunder Mountain Gold, Inc. explores for and develops mining properties in Nevada and Idaho, the United States. It explores for zinc, silver, gold, and copper deposits, as well as base metals and other commodities. The company holds interests in the South Mountain property that includes 18 patented mining claims covering an area of approximately 346 acres; 36 acres of private land; 21 unpatented mining lode claims covering an area of approximately 290 acres; leased private land covering approximately 489 acres; and private land not contiguous with the mining claims covering an area of 360 acres located in the South Mountain Mining District, Owyhee County, Idaho. It also holds interests in the Trout Creek project, which comprises 26 unpatented claims covering an area of approximately 533 acres located in Lander County, Nevada. Thunder Mountain Gold, Inc. was incorporated in 1935 and is based in Boise, Idaho.

About Ero Copper

Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil. The company is involved in the production and sale of copper concentrate from the Caraíba operations located in the Curaçá Valley, northeastern Bahia state, Brazil, as well as gold and silver by-products. It also holds 100% interests in the Tucumã project, a copper development project located within southeastern Pará state; and the Xavantina Operations located in Mato Grosso state. Ero Copper Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.