Critical Comparison: Northern Dynasty Minerals (NAK) and Its Peers

Northern Dynasty Minerals (NASDAQ:NAK) is one of 54 public companies in the “Gold & Silver Ores” industry, but how does it compare to its rivals? We will compare Northern Dynasty Minerals to similar businesses based on the strength of its analyst recommendations, profitability, risk, institutional ownership, earnings, dividends and valuation.

Profitability

This table compares Northern Dynasty Minerals and its rivals’ 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
Northern Dynasty Minerals Competitors	-56.04%	0.43%	0.77%

Earnings and Valuation

This table compares Northern Dynasty Minerals and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northern Dynasty Minerals	N/A	N/A	-13.92
Northern Dynasty Minerals Competitors	$940.03 million	-$221.11 million	-7.75

Northern Dynasty Minerals’ rivals have higher revenue, but lower earnings than Northern Dynasty Minerals. Northern Dynasty Minerals is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

10.6% of Northern Dynasty Minerals shares are held by institutional investors. Comparatively, 29.0% of shares of all “Gold & Silver Ores” companies are held by institutional investors. 2.2% of Northern Dynasty Minerals shares are held by company insiders. Comparatively, 10.8% of shares of all “Gold & Silver Ores” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Northern Dynasty Minerals and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Dynasty Minerals	0	0	1	0	3.00
Northern Dynasty Minerals Competitors	464	1113	1057	27	2.24

Northern Dynasty Minerals currently has a consensus target price of $2.50, suggesting a potential upside of 49.70%. As a group, “Gold & Silver Ores” companies have a potential upside of 30.14%. Given Northern Dynasty Minerals’ stronger consensus rating and higher possible upside, research analysts plainly believe Northern Dynasty Minerals is more favorable than its rivals.

Volatility and Risk

Northern Dynasty Minerals has a beta of -0.6, indicating that its stock price is 160% less volatile than the S&P 500. Comparatively, Northern Dynasty Minerals’ rivals have a beta of 0.82, indicating that their average stock price is 18% less volatile than the S&P 500.

Summary

Northern Dynasty Minerals rivals beat Northern Dynasty Minerals on 8 of the 12 factors compared.

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.