Head-To-Head Analysis: Pretium Resources (PVG) versus Mountain Province Diamonds (MPVD)

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Pretium Resources (NYSE: PVG) and Mountain Province Diamonds (NASDAQ:MPVD) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Pretium Resources and Mountain Province Diamonds, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 2 6 0 2.75
Mountain Province Diamonds 0 0 0 0 N/A

Pretium Resources presently has a consensus price target of $14.00, suggesting a potential upside of 51.52%. Given Pretium Resources’ higher probable upside, research analysts clearly believe Pretium Resources is more favorable than Mountain Province Diamonds.

Volatility and Risk

Pretium Resources has a beta of -0.2, meaning that its stock price is 120% less volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.

Institutional & Insider Ownership

51.0% of Pretium Resources shares are owned by institutional investors. Comparatively, 15.2% of Mountain Province Diamonds shares are owned by institutional investors. 4.8% of Mountain Province Diamonds shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Pretium Resources and Mountain Province Diamonds’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pretium Resources 3.22% 8.75% 4.41%
Mountain Province Diamonds 1.94% 4.00% 1.63%

Earnings and Valuation

This table compares Pretium Resources and Mountain Province Diamonds’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pretium Resources $177.93 million 9.49 -$16.45 million $0.10 92.40
Mountain Province Diamonds $131.15 million 3.44 $13.23 million $0.08 26.88

Mountain Province Diamonds has lower revenue, but higher earnings than Pretium Resources. Mountain Province Diamonds is trading at a lower price-to-earnings ratio than Pretium Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Pretium Resources beats Mountain Province Diamonds on 9 of the 13 factors compared between the two stocks.

About Pretium Resources

Pretium Resources, Inc. engages in the acquisition, exploration, and development of gold and precious metals resource properties. Its projects include Snowfield and Brucejack which are located in British Columbia. The company was founded by Robert Allan Quartermain on October 22, 2010 and is headquartered in Vancouver, Canada.

About Mountain Province Diamonds

Mountain Province Diamonds Inc., through its wholly owned subsidiaries, focuses on the mining and marketing of rough diamonds worldwide. The company's primary asset is its 49% interest in the Gahcho Kué project comprising four mining leases covering an area of approximately 10,353 acres located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was founded in 1986 and is headquartered in Toronto, Canada.

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