Head to Head Analysis: Pretium Resources (NYSE:PVG) vs. MP Materials (NYSE:MP)

Pretium Resources (NYSE:PVG) and MP Materials (NYSE:MP) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Risk and Volatility

Pretium Resources has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 4.93, indicating that its share price is 393% more volatile than the S&P 500.

Profitability

This table compares Pretium Resources and MP Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pretium Resources -3.17% 17.44% 11.34%
MP Materials N/A 8.19% 4.84%

Analyst Recommendations

This is a summary of current recommendations for Pretium Resources and MP Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 1 4 0 2.80
MP Materials 0 2 6 0 2.75

Pretium Resources currently has a consensus price target of $15.25, indicating a potential upside of 55.30%. MP Materials has a consensus price target of $40.50, indicating a potential upside of 30.02%. Given Pretium Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe Pretium Resources is more favorable than MP Materials.

Valuation & Earnings

This table compares Pretium Resources and MP Materials’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pretium Resources $617.59 million 2.99 -$38.44 million $0.95 10.34
MP Materials $134.31 million 41.23 -$21.83 million $0.22 141.59

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

Institutional & Insider Ownership

54.0% of Pretium Resources shares are held by institutional investors. Comparatively, 68.1% of MP Materials shares are held by institutional investors. 49.7% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

MP Materials beats Pretium Resources on 8 of the 14 factors compared between the two stocks.

Pretium Resources Company Profile

Pretium Resources, Inc. engages in the acquisition, exploration, development and operation 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 in 2010 and is headquartered in Vancouver, Canada.

MP Materials Company Profile

MP Materials Corp. engages in the ownership and operation of integrated rare earth mining and processing facilities. It owns and operates the Mountain Pass facility located in the Western Hemisphere. The company holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. It offers neodymium and praseodymium that are rare earth elements, which in combination form neodymium-praseodymium. The company was incorporated in 2017 and is headquartered in Las Vegas, Nevada.

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