Financial Contrast: Tahoe Resources (TAHO) vs. Mountain Province Diamonds (MDM)
Tahoe Resources (NYSE: TAHO) and Mountain Province Diamonds (NASDAQ:MDM) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
This is a breakdown of recent recommendations for Tahoe Resources and Mountain Province Diamonds, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mountain Province Diamonds||0||2||1||0||2.33|
Tahoe Resources presently has a consensus price target of $17.33, suggesting a potential upside of 210.63%. Mountain Province Diamonds has a consensus price target of $7.50, suggesting a potential upside of 47.06%. Given Tahoe Resources’ stronger consensus rating and higher possible upside, research analysts plainly believe Tahoe Resources is more favorable than Mountain Province Diamonds.
Risk and Volatility
Tahoe Resources has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
This table compares Tahoe Resources and Mountain Province Diamonds’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mountain Province Diamonds||N/A||-10.46%||-4.34%|
Insider and Institutional Ownership
71.1% of Tahoe Resources shares are held by institutional investors. Comparatively, 22.7% of Mountain Province Diamonds shares are held by institutional investors. 4.8% of Mountain Province Diamonds shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Tahoe Resources and Mountain Province Diamonds’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tahoe Resources||$884.74 million||1.97||$433.59 million||$0.55||10.15|
|Mountain Province Diamonds||N/A||N/A||N/A||$0.02||255.00|
Tahoe Resources has higher revenue and earnings than Mountain Province Diamonds. Tahoe Resources is trading at a lower price-to-earnings ratio than Mountain Province Diamonds, indicating that it is currently the more affordable of the two stocks.
Tahoe Resources beats Mountain Province Diamonds on 9 of the 11 factors compared between the two stocks.
Tahoe Resources Company Profile
Tahoe Resources Inc. is a mine operations, and mineral exploration and development company. The Company’s principal business activities are the exploration, development, operation and acquisition of mineral properties for the mining of precious metals in the Americas. Its business involves operating the Escobal mine, a silver mining operation located in southeastern Guatemala, the La Arena and Shahuindo mines, gold mining operations located in northwestern Peru, and the Bell Creek mine and mill and the Timmins West mine, gold mining operations located in northeastern Ontario, Canada. Its additional business objectives include the expansion of gold production at the Shahuindo and Bell Creek mines, the development of the Whitney Project and the ongoing exploration programs in Peru and Canada. It focuses on the initial evaluation of exploration/development projects with the main projects being the La Arena copper-gold sulfide project in Peru and the Fenn-Gib gold project in Canada.
Mountain Province Diamonds Company Profile
Mountain Province Diamonds Inc. is a resource company. The Company is focused on the mining and marketing of rough diamonds to the global market. The Company holds interests in the GK Diamond Mine. The GK Diamond Mine is located in the Northwest Territories (NWT) of Canada, in the District of Mackenzie, 300 kilometers east-northeast of Yellowknife and 80 kilometers east-southeast of the Snap Lake Mine. The GK Diamond Mine includes various kimberlite deposits, such as 5034, Hearne, Tesla and Tuzo. The GK Diamond Mine covers approximately 10,350 acres. The GK Diamond Mine includes four mining leases (numbers 4341, 4199, 4200 and 4201).
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