Head to Head Review: Nouveau Monde Graphite (NYSE:NMG) versus TMC the metals (NASDAQ:TMC)

Nouveau Monde Graphite (NYSE:NMG) and TMC the metals (NASDAQ:TMC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Institutional and Insider Ownership

41.1% of Nouveau Monde Graphite shares are owned by institutional investors. Comparatively, 4.4% of TMC the metals shares are owned by institutional investors. 22.7% of Nouveau Monde Graphite shares are owned by insiders. Comparatively, 28.5% of TMC the metals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nouveau Monde Graphite and TMC the metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nouveau Monde Graphite	1	1	3	2	2.86
TMC the metals	1	1	2	0	2.25

Nouveau Monde Graphite currently has a consensus price target of $5.40, suggesting a potential upside of 164.19%. TMC the metals has a consensus price target of $10.88, suggesting a potential upside of 107.54%. Given Nouveau Monde Graphite’s stronger consensus rating and higher possible upside, research analysts clearly believe Nouveau Monde Graphite is more favorable than TMC the metals.

Profitability

This table compares Nouveau Monde Graphite and TMC the metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nouveau Monde Graphite	N/A	-42.10%	-23.83%
TMC the metals	N/A	-6,267.63%	-93.74%

Risk & Volatility

Nouveau Monde Graphite has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, TMC the metals has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Valuation and Earnings

This table compares Nouveau Monde Graphite and TMC the metals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nouveau Monde Graphite	N/A	N/A	-$75.28 million	($0.49)	-4.17
TMC the metals	N/A	N/A	-$319.84 million	($0.80)	-6.55

TMC the metals is trading at a lower price-to-earnings ratio than Nouveau Monde Graphite, indicating that it is currently the more affordable of the two stocks.

Summary

Nouveau Monde Graphite beats TMC the metals on 10 of the 12 factors compared between the two stocks.

About Nouveau Monde Graphite

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores for graphite. The company’s flagship property is the 100% owned Matawinie graphite property including 176 mining claims covering an area of 9,264 hectares located in Quebec. It also involved in the real estate and trading activities. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-Des-Saints, Canada.

About TMC the metals

TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications. The company was formerly known as Sustainable Opportunities Acquisition Corporation and changed its name to TMC the metals company Inc. TMC the metals company Inc. was founded in 2011 and is based in Vancouver, Canada.