Pretium Resources (NYSE:PVG) and Avalon Advanced Materials (OTCMKTS:AVLNF) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Earnings & Valuation
This table compares Pretium Resources and Avalon Advanced Materials’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pretium Resources||$454.56 million||4.07||$36.62 million||$0.54||18.59|
|Avalon Advanced Materials||$50,000.00||332.13||-$2.53 million||N/A||N/A|
Insider & Institutional Ownership
51.0% of Pretium Resources shares are held by institutional investors. Comparatively, 0.0% of Avalon Advanced Materials shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Pretium Resources and Avalon Advanced Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avalon Advanced Materials||-5,740.82%||-3.12%||-3.00%|
This is a summary of current ratings and recommmendations for Pretium Resources and Avalon Advanced Materials, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avalon Advanced Materials||0||0||0||0||N/A|
Pretium Resources presently has a consensus target price of $16.30, indicating a potential upside of 62.35%. Given Pretium Resources’ higher probable upside, equities analysts clearly believe Pretium Resources is more favorable than Avalon Advanced Materials.
Risk and Volatility
Pretium Resources has a beta of -0.46, suggesting that its stock price is 146% less volatile than the S&P 500. Comparatively, Avalon Advanced Materials has a beta of -0.42, suggesting that its stock price is 142% less volatile than the S&P 500.
Pretium Resources beats Avalon Advanced Materials on 8 of the 10 factors compared between the two stocks.
About Pretium Resources
Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. The company primarily explores for gold, silver, and copper deposits. Its principal project is the Brucejack project that consists of 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia. The company was incorporated in 2010 and is headquartered in Vancouver, Canada.
About Avalon Advanced Materials
Avalon Advanced Materials Inc., together with its subsidiaries, engages in the exploration and development of mineral properties primarily in Canada. The company focuses on rare metals and minerals, including lithium, tantalum, niobium, cesium, indium, gallium, germanium, rare earth elements, yttrium, and zirconium, as well as tin. It focuses on the Nechalacho project, which comprises 5 contiguous mining leases covering an area of 10,449 acres and 3 claims covering an area of 4,597 acres located at Thor Lake in the Mackenzie Mining District of the Northwest Territories; the Separation Rapids Lithium project, which consists of 15 mineral claims and 1 mining claim lease covering an area of approximately 2,869 hectares located in the Paterson Lake Area of the Kenora Mining Division, Ontario; and the East Kemptville Tin-Indium project located northeast of Yarmouth in Yarmouth County, southwestern Nova Scotia. It also owns royalty interests in 2 exploration projects. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. was founded in 1991 and is headquartered in Toronto, Canada.
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