Nouveau Monde Graphite (NMG) & Its Peers Critical Analysis

Nouveau Monde Graphite (NYSE:NMG) is one of 103 public companies in the “MINING – MISC” industry, but how does it compare to its peers? We will compare Nouveau Monde Graphite to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Earnings and Valuation

This table compares Nouveau Monde Graphite and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nouveau Monde Graphite	N/A	-$53.48 million	-5.20
Nouveau Monde Graphite Competitors	$8.36 billion	$455.46 million	-0.56

Nouveau Monde Graphite’s peers have higher revenue and earnings than Nouveau Monde Graphite. Nouveau Monde Graphite is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Nouveau Monde Graphite and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nouveau Monde Graphite	N/A	-40.65%	-30.19%
Nouveau Monde Graphite Competitors	-938.79%	-12.66%	-5.27%

Institutional & Insider Ownership

41.1% of Nouveau Monde Graphite shares are owned by institutional investors. Comparatively, 35.1% of shares of all “MINING – MISC” companies are owned by institutional investors. 22.7% of Nouveau Monde Graphite shares are owned by company insiders. Comparatively, 10.0% of shares of all “MINING – MISC” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Nouveau Monde Graphite has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Nouveau Monde Graphite’s peers have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Nouveau Monde Graphite and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nouveau Monde Graphite	0	0	2	0	3.00
Nouveau Monde Graphite Competitors	615	1682	3314	139	2.52

Nouveau Monde Graphite presently has a consensus target price of $2.58, suggesting a potential upside of 54.65%. As a group, “MINING – MISC” companies have a potential upside of 15.34%. Given Nouveau Monde Graphite’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Nouveau Monde Graphite is more favorable than its peers.

Summary

Nouveau Monde Graphite peers beat Nouveau Monde Graphite on 7 of the 13 factors compared.

Nouveau Monde Graphite Company Profile

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores for graphite. The company’s flagship property is the 100% owned Matawinie graphite property including 176 mining claims covering an area of 9,264 hectares located in Quebec. It also involved in the real estate and trading activities. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-Des-Saints, Canada.