Paladin Energy (OTCMKTS:PALAF) and IBC Advanced Alloys (OTCMKTS:IAALF) Critical Analysis

Paladin Energy (OTCMKTS:PALAF) and IBC Advanced Alloys (OTCMKTS:IAALF) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Paladin Energy and IBC Advanced Alloys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paladin Energy	0	1	0	0	2.00
IBC Advanced Alloys	0	0	0	0	0.00

Paladin Energy currently has a consensus target price of $9.05, indicating a potential upside of 29.52%. Given Paladin Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Paladin Energy is more favorable than IBC Advanced Alloys.

Profitability

This table compares Paladin Energy and IBC Advanced Alloys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paladin Energy	-7.08%	-1.90%	-1.44%
IBC Advanced Alloys	-10.73%	-93.25%	-7.38%

Earnings & Valuation

This table compares Paladin Energy and IBC Advanced Alloys”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paladin Energy	$177.68 million	17.67	-$44.64 million	($0.05)	-139.75
IBC Advanced Alloys	$17.76 million	0.76	-$3.41 million	($0.02)	-5.86

IBC Advanced Alloys has lower revenue, but higher earnings than Paladin Energy. Paladin Energy is trading at a lower price-to-earnings ratio than IBC Advanced Alloys, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.0% of Paladin Energy shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Paladin Energy has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, IBC Advanced Alloys has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Summary

Paladin Energy beats IBC Advanced Alloys on 9 of the 12 factors compared between the two stocks.

About Paladin Energy

Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.

About IBC Advanced Alloys

IBC Advanced Alloys Corp. develops, produces, and sells specialty alloy products in the United States and internationally. The company operates through Copper Alloys and Engineered Materials segments. It offers various copper alloys as castings and forgings, such as beryllium copper, chrome copper, oxygen-free high conductivity copper, and aluminum bronze in the form of plates, blocks, rounds, discs, bars, rings, tubes, rods, and other custom forgings, as well as specialty copper alloy forgings for plastic mold tooling and resistance welding applications. The company also provides beryllium-aluminum castings, beryllium-aluminum alloys, beryllium-copper alloys, high-strength beryllium-copper casting alloys, high-conductivity beryllium-copper casting alloys, and beryllium-nickel casting alloys. In addition, it manufactures Thermal-Mold Super, a beryllium-free mold alloy of copper-nickel-silicon-chrome, as well as provides tolling services and consulting. It serves automotive, defense, resistance welding, electronics, industrial equipment, injection molding, foundry, aerospace, and oil and gas industries. The company was formerly known as International Beryllium Corporation and changed its name to IBC Advanced Alloys Corp. in March 2009. IBC Advanced Alloys Corp. is headquartered in Franklin, Indiana.