Critical Review: TMC the metals (NASDAQ:TMC) & Cerro Grande Mining (OTCMKTS:CEGMF)

TMC the metals (NASDAQ:TMC) and Cerro Grande Mining (OTCMKTS:CEGMF) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Risk and Volatility

TMC the metals has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Cerro Grande Mining has a beta of -0.69, suggesting that its share price is 169% less volatile than the S&P 500.

Institutional and Insider Ownership

56.7% of TMC the metals shares are held by institutional investors. 31.3% of TMC the metals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for TMC the metals and Cerro Grande Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TMC the metals	0	1	2	0	2.67
Cerro Grande Mining	0	0	0	0	N/A

TMC the metals currently has a consensus price target of $4.10, indicating a potential upside of 286.79%. Given TMC the metals’ higher probable upside, equities research analysts plainly believe TMC the metals is more favorable than Cerro Grande Mining.

Valuation and Earnings

This table compares TMC the metals and Cerro Grande Mining’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TMC the metals	N/A	N/A	-$170.96 million	($0.50)	-2.12
Cerro Grande Mining	N/A	N/A	-$120,000.00	N/A	N/A

Profitability

This table compares TMC the metals and Cerro Grande Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TMC the metals	N/A	-305.23%	-174.93%
Cerro Grande Mining	N/A	N/A	-30.85%

Summary

TMC the metals beats Cerro Grande Mining on 5 of the 8 factors compared between the two stocks.

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 the Clarion Clipperton Zone (CCZ) in the south-west of San Diego, 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 CCZ of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, clean 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 incorporated in 2019 and is based in Vancouver, Canada.

About Cerro Grande Mining

Cerro Grande Mining Corporation engages in the acquisition, exploration, and development of mineral properties in Chile. The company explores for gold, copper, and industrial mineral deposits. It holds interests in Tordillo project, which covers an area of 6,632 hectares located to the southwest of Pimenton; and limestone deposits, including Catedral and Cal Norte. The company was formerly known as South American Gold and Copper Company Limited and changed its name to Cerro Grande Mining Corporation in March 2011. Cerro Grande Mining Corporation was founded in 1990 and is based in Providencia, Chile.