Reviewing Norsk Hydro ASA (OTCMKTS:NHYDY) & Perpetua Resources (NASDAQ:PPTA)

Norsk Hydro ASA (OTCMKTS:NHYDY) and Perpetua Resources (NASDAQ:PPTA) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Valuation and Earnings

This table compares Norsk Hydro ASA and Perpetua Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norsk Hydro ASA	$20.05 billion	1.03	$647.52 million	$0.31	33.68
Perpetua Resources	N/A	N/A	-$100.39 million	($1.32)	-18.42

Norsk Hydro ASA has higher revenue and earnings than Perpetua Resources. Perpetua Resources is trading at a lower price-to-earnings ratio than Norsk Hydro ASA, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Norsk Hydro ASA and Perpetua Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norsk Hydro ASA	2	6	2	2	2.33
Perpetua Resources	1	1	5	0	2.57

Perpetua Resources has a consensus price target of $35.42, indicating a potential upside of 45.63%. Given Perpetua Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Perpetua Resources is more favorable than Norsk Hydro ASA.

Institutional & Insider Ownership

0.0% of Norsk Hydro ASA shares are held by institutional investors. Comparatively, 70.1% of Perpetua Resources shares are held by institutional investors. 0.0% of Norsk Hydro ASA shares are held by company insiders. Comparatively, 0.6% of Perpetua Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Norsk Hydro ASA and Perpetua Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norsk Hydro ASA	3.11%	10.52%	5.50%
Perpetua Resources	N/A	-20.71%	-20.15%

Summary

Norsk Hydro ASA beats Perpetua Resources on 8 of the 13 factors compared between the two stocks.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.