Northern Dynasty Minerals (NASDAQ:NAK – Get Free Report) and Platinum Group Metals (NYSE:PLG – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Northern Dynasty Minerals and Platinum Group Metals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northern Dynasty Minerals | 0 | 0 | 1 | 0 | 3.00 |
| Platinum Group Metals | 0 | 0 | 0 | 0 | 0.00 |
Northern Dynasty Minerals presently has a consensus target price of $2.50, indicating a potential upside of 22.55%. Given Northern Dynasty Minerals’ stronger consensus rating and higher probable upside, equities analysts plainly believe Northern Dynasty Minerals is more favorable than Platinum Group Metals.
Volatility & Risk
Valuation & Earnings
This table compares Northern Dynasty Minerals and Platinum Group Metals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northern Dynasty Minerals | N/A | N/A | N/A | ($0.12) | -17.00 |
| Platinum Group Metals | N/A | N/A | -$4.61 million | ($0.04) | -66.75 |
Platinum Group Metals is trading at a lower price-to-earnings ratio than Northern Dynasty Minerals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Northern Dynasty Minerals and Platinum Group Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northern Dynasty Minerals | N/A | N/A | N/A |
| Platinum Group Metals | N/A | -10.13% | -9.69% |
Institutional and Insider Ownership
10.6% of Northern Dynasty Minerals shares are held by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are held by institutional investors. 2.2% of Northern Dynasty Minerals shares are held by insiders. Comparatively, 0.0% of Platinum Group Metals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Northern Dynasty Minerals beats Platinum Group Metals on 7 of the 10 factors compared between the two stocks.
About Northern Dynasty Minerals
Northern Dynasty Minerals Ltd. engages in the exploration of mineral properties in the United States. Its principal mineral property is the Pebble Copper-Gold-Molybdenum-Silver-Rhenium project comprising 1,840 mineral claims that covers an area of approximately 274 square miles located in southwest Alaska, 17 miles from the villages of Iliamna and Newhalen, and approximately 200 miles southwest of the city of Anchorage. The company was formerly known as Northern Dynasty Explorations Ltd. and changed its name to Northern Dynasty Minerals Ltd. in October 1997. Northern Dynasty Minerals Ltd. was incorporated in 1983 and is headquartered in Vancouver, Canada.
About Platinum Group Metals
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 Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.
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