NextSource Materials (OTCMKTS:NSRCF) & Platinum Group Metals (NYSE:PLG) Financial Contrast

NextSource Materials (OTCMKTS:NSRCFGet Rating) and Platinum Group Metals (NYSE:PLGGet Rating) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Risk & Volatility

NextSource Materials has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NextSource Materials and Platinum Group Metals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NextSource Materials 0 0 1 0 3.00
Platinum Group Metals 0 0 0 0 N/A

Earnings & Valuation

This table compares NextSource Materials and Platinum Group Metals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NextSource Materials N/A N/A -$41.96 million ($0.57) -3.12
Platinum Group Metals N/A N/A -$13.06 million ($0.16) -8.44

Platinum Group Metals is trading at a lower price-to-earnings ratio than NextSource Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NextSource Materials and Platinum Group Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NextSource Materials N/A N/A -60.41%
Platinum Group Metals N/A -42.26% -23.67%

Insider & Institutional Ownership

0.4% of NextSource Materials shares are held by institutional investors. Comparatively, 39.2% of Platinum Group Metals shares are held by institutional investors. 4.6% of NextSource Materials 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.

Summary

Platinum Group Metals beats NextSource Materials on 5 of the 9 factors compared between the two stocks.

About NextSource Materials (Get Rating)

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its principal mineral property is the Molo graphite mine that includes 2,119 permits covering an area of 827.7 square kilometers located in Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. and changed its name to NextSource Materials Inc. in April 2017. NextSource Materials Inc. was founded in 2004 and is headquartered in Toronto, Canada.

About Platinum Group Metals (Get Rating)

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Western Bushveld complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was incorporated in 2000 and is headquartered in Vancouver, Canada.

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