MAG Silver Corp (NYSE: MAG) and Pretium Resources (NYSE:PVG) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

47.8% of Pretium Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for MAG Silver Corp and Pretium Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MAG Silver Corp 0 1 5 2 3.13
Pretium Resources 0 1 4 0 2.80

MAG Silver Corp currently has a consensus price target of $15.33, indicating a potential upside of 19.70%. Pretium Resources has a consensus price target of $15.40, indicating a potential upside of 87.12%. Given Pretium Resources’ higher possible upside, analysts clearly believe Pretium Resources is more favorable than MAG Silver Corp.

Earnings and Valuation

This table compares MAG Silver Corp and Pretium Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MAG Silver Corp N/A N/A -$6.89 million N/A N/A
Pretium Resources N/A N/A -$17.15 million ($0.30) -27.43

Profitability

This table compares MAG Silver Corp and Pretium Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MAG Silver Corp N/A -0.71% -0.71%
Pretium Resources N/A -2.42% -1.42%

Summary

MAG Silver Corp beats Pretium Resources on 6 of the 8 factors compared between the two stocks.

About MAG Silver Corp

MAG Silver Corp. is a mineral exploration and development company. The Company is focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property. Juanicipio Property is located in the Fresnillo District, Zacatecas State, Mexico. The Juanicipio Property includes silver-gold-lead-zinc epithermal vein deposit. The Company owns the mineral concessions comprising the Cinco de Mayo Property. The Cinco de Mayo Property is located approximately 190 kilometers northwest of the city of Chihuahua, in northern Chihuahua State, Mexico, and covers approximately 25,110 hectares. The Company owns the Guigui project located in the Santa Eulalia Mining District of Chihuahua, Mexico. Guigui project consists of approximately 8,300 hectares.

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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