Head to Head Review: Teck Resources (TECK) & Pretium Resources (NYSE:PVG)
Teck Resources (NYSE: TECK) and Pretium Resources (NYSE:PVG) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitabiliy, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
46.7% of Teck Resources shares are held by institutional investors. Comparatively, 47.8% of Pretium Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Teck Resources and Pretium Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Teck Resources pays an annual dividend of $0.15 per share and has a dividend yield of 0.7%. Pretium Resources does not pay a dividend. Teck Resources pays out 5.6% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Teck Resources and Pretium Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$9.22 billion||1.39||$3.82 billion||$2.66||8.36|
|Pretium Resources||N/A||N/A||-$17.15 million||($0.30)||-28.17|
Teck Resources has higher revenue and earnings than Pretium Resources. Pretium Resources is trading at a lower price-to-earnings ratio than Teck Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Teck Resources has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Pretium Resources has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.
This is a summary of current recommendations for Teck Resources and Pretium Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Teck Resources currently has a consensus target price of $27.22, suggesting a potential upside of 22.39%. Pretium Resources has a consensus target price of $15.50, suggesting a potential upside of 83.43%. Given Pretium Resources’ higher possible upside, analysts clearly believe Pretium Resources is more favorable than Teck Resources.
Teck Resources beats Pretium Resources on 10 of the 13 factors compared between the two stocks.
About Teck Resources
Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy. Through its interests in mining and processing operations in Canada, the United States, Chile and Peru, the Company is a seaborne exporter of steelmaking coal, and producer of copper and mined zinc. It also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. In addition, the Company owns interest in the Fort Hills oil sands project and interests in other assets in the Athabasca region of Alberta. It is engaged in advancing porphyry copper projects in Canada, Chile, Peru, the United States and Turkey.
About Pretium Resources
Pretium Resources Inc. is a Canada-based exploration and development company. The Company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas. The Company’s projects include Brucejack Project and the Snowfield Project, both of which are located in northwestern British Columbia. The Company’s focus is on advancing the Brucejack Project to production as a high-grade gold underground mine. The Brucejack Project is the Company’s material mineral project, which is located approximately 950 kilometers northwest of Vancouver, British Columbia, and over 65 kilometers north-northwest of Stewart, British Columbia. The Brucejack Project consists of approximately four mining leases and over six mineral claims totaling approximately 3,050 hectares in area. The Snowfield Project borders the Brucejack Project to the north and consists of over one mineral claim with an area of approximately 1,267.43 hectares.
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