Pretium Resources (NYSE:PVG) and EXXARO RESOURCE/S (OTCMKTS:EXXAY) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Earnings & Valuation

This table compares Pretium Resources and EXXARO RESOURCE/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pretium Resources $177.93 million 7.22 -$16.45 million $0.10 70.00
EXXARO RESOURCE/S $1.72 billion 1.68 $450.44 million N/A N/A

EXXARO RESOURCE/S has higher revenue and earnings than Pretium Resources.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pretium Resources and EXXARO RESOURCE/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 2 3 0 2.60
EXXARO RESOURCE/S 0 0 0 0 N/A

Pretium Resources currently has a consensus target price of $12.75, indicating a potential upside of 82.14%. Given Pretium Resources’ higher probable upside, research analysts plainly believe Pretium Resources is more favorable than EXXARO RESOURCE/S.

Dividends

EXXARO RESOURCE/S pays an annual dividend of $0.55 per share and has a dividend yield of 5.6%. Pretium Resources does not pay a dividend.

Profitability

This table compares Pretium Resources and EXXARO RESOURCE/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pretium Resources 6.85% 10.62% 5.36%
EXXARO RESOURCE/S N/A N/A N/A

Institutional & Insider Ownership

55.0% of Pretium Resources shares are owned by institutional investors. 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.

Risk & Volatility

Pretium Resources has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500. Comparatively, EXXARO RESOURCE/S has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Summary

Pretium Resources beats EXXARO RESOURCE/S on 7 of the 11 factors compared between the two stocks.

About Pretium Resources

Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. It primarily explores for gold, silver, and copper deposits. The company's principal project is the Brucejack project comprising 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia. It also owns interest in the Snowfield project consisting of 1 mineral claim covering an area of 1,217 hectares located in northern British Columbia. Pretium Resources Inc. was incorporated in 2010 and is headquartered in Vancouver, Canada.

About EXXARO RESOURCE/S

Exxaro Resources Limited, a diversified resources company, operates in the coal, titanium dioxide, ferrous, and energy markets in South Africa, Europe, the United States, and Australia. The company operates through Coal; Ferrous; TiO2 and Alkali Chemicals; Energy; and Other segments. It produces thermal coal, metallurgical coal, and semi-soft coking coal products in the Waterberg and Mpumalanga regions; offers inorganic minerals and chemicals, and iron ore; and operates two wind farms. The company was formerly known as Kumba Iron Ore Limited and changed its name to Exxaro Resources Limited in November 2006. The company is based in Pretoria, South Africa.

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