Analyzing Impala Platinum (OTCMKTS:IMPUY) and Foremost Clean Energy (NASDAQ:FMST)

Impala Platinum (OTCMKTS:IMPUY) and Foremost Clean Energy (NASDAQ:FMST) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Insider & Institutional Ownership

0.1% of Foremost Clean Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Impala Platinum and Foremost Clean Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impala Platinum	$4.71 billion	2.80	$41.85 million	N/A	N/A
Foremost Clean Energy	N/A	N/A	-$2.60 million	($0.33)	-5.82

Impala Platinum has higher revenue and earnings than Foremost Clean Energy.

Volatility and Risk

Impala Platinum has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Foremost Clean Energy has a beta of 5.94, indicating that its share price is 494% more volatile than the S&P 500.

Profitability

This table compares Impala Platinum and Foremost Clean Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Impala Platinum	N/A	N/A	N/A
Foremost Clean Energy	N/A	-16.43%	-15.15%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Impala Platinum and Foremost Clean Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impala Platinum	0	0	2	1	3.33
Foremost Clean Energy	1	0	0	0	1.00

Impala Platinum presently has a consensus target price of $23.00, suggesting a potential upside of 56.42%. Given Impala Platinum’s stronger consensus rating and higher probable upside, analysts plainly believe Impala Platinum is more favorable than Foremost Clean Energy.

Summary

Impala Platinum beats Foremost Clean Energy on 8 of the 10 factors compared between the two stocks.

About Impala Platinum

Impala Platinum Holdings Limited engages in the mining, processing, concentrating, refining, and sale of platinum group metals (PGMs) and associated base metals. The company produces platinum, palladium, rhodium, nickel, and by-products, as well as ruthenium, iridium, and gold. It has operations on the PGM-bearing orebodies, including the Bushveld Complex located in South Africa; and the Great Dyke situated in Zimbabwe, as well as the Canadian Shield. The company markets and sells its products in South Africa, Japan, China, the United States, and Europe. Impala Platinum Holdings Limited was incorporated in 1957 and is based in Sandton, South Africa.

About Foremost Clean Energy

Foremost Clean Energy Ltd. engages in uranium and lithium exploration. Its uranium properties include the Eastern Athabasca and Blue Sky projects. The firm also maintains a secondary portfolio of lithium projects including Zoro, Jean Lake, Peg North, Grass River, and Jol. It operates through the Canada and United States geographical segments. The company was founded on July 7, 2005 and is headquartered in Vancouver, Canada.