New Jersey Mining (OTCMKTS:NJMC) and Tahoe Resources (NYSE:TAHO) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares New Jersey Mining and Tahoe Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Jersey Mining 30.81% 13.53% 10.47%
Tahoe Resources -46.41% -2.31% -1.96%

Analyst Recommendations

This is a summary of recent ratings for New Jersey Mining and Tahoe Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Jersey Mining 0 0 0 0 N/A
Tahoe Resources 0 2 2 0 2.50

Tahoe Resources has a consensus target price of $5.00, indicating a potential upside of 31.23%. Given Tahoe Resources’ higher possible upside, analysts plainly believe Tahoe Resources is more favorable than New Jersey Mining.

Earnings & Valuation

This table compares New Jersey Mining and Tahoe Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Jersey Mining $4.28 million 5.74 $30,000.00 N/A N/A
Tahoe Resources $733.60 million 1.63 $81.79 million $0.27 14.11

Tahoe Resources has higher revenue and earnings than New Jersey Mining.

Institutional & Insider Ownership

66.7% of Tahoe Resources shares are owned by institutional investors. 20.5% of New Jersey Mining shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

New Jersey Mining has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Tahoe Resources has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

About New Jersey Mining

New Jersey Mining Company explores for, develops, and extracts gold, silver, and base metal resources in the Greater Coeur d'Alene Mining District of North Idaho and Western Montana. It holds 100% interest in the Golden Chest that consists of 25 patented mining claims covering 280 acres and 70 unpatented claims mine covering 990 acres located in Murray, Idaho; and 50% interest in the Butte Highlands mine covering an area of approximately 1,310 acres comprising 11 patented claims, 65 unpatented lode mining claims, and 20 unpatented mill-site claims located in Butte, Montana. The company also holds interest in the New Jersey Mine, which include 102 acres of private land with surface and mineral rights, 108 acres of private land with mineral rights, 40 acres of private land with surface rights, and approximately 130 acres of unpatented mining claims located in Kellogg, Idaho; Toboggan project that comprise 106 unpatented mining claims located ion Murray, Idaho; McKinley property covering an area of approximately 4,368 acres located in the Simpson Mining District, central Idaho; and Eastern Star Project, which consists of 11 patented lode mining claims located in Elk City, central Idaho. In addition, it holds interest in the Four Square Mine that comprise 334 acres of mining claims located in Murray, Idaho. New Jersey Mining Company was founded in 1996 and is headquartered in Coeur d'Alene, Idaho.

About Tahoe Resources

Tahoe Resources Inc., together with its subsidiaries, acquires, explores for, develops, and operates mineral properties in the Americas. It explores for silver, gold, lead, zinc, and copper deposits, as well as precious metals assets. The company holds interest in the La Arena gold mine located in the Huamachuco district of northern Peru; Shahuindo mine located in the province of Cajabamba in northern Peru; and La Arena II, a copper-gold porphyry deposit located in Peru. It also holds interest in the Timmins mines, including the Bell Creek and Timmins West mines, the Fenn-Gib project, the Juby project, the Vogel project, and the Gold River project located in Timmins, Ontario. The company was formerly known as CKM Resources Inc. and changed its name to Tahoe Resources Inc. in January 2010. Tahoe Resources Inc. was incorporated in 2009 and is headquartered in Reno, Nevada.

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