Turquoise Hill Resources (NYSE: TRQ) and Pretium Resources (NYSE:PVG) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
This table compares Turquoise Hill Resources and Pretium Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turquoise Hill Resources||14.20%||1.60%||1.01%|
Institutional and Insider Ownership
32.9% of Turquoise Hill Resources shares are owned by institutional investors. Comparatively, 43.3% of Pretium Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Turquoise Hill Resources has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Pretium Resources has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Turquoise Hill Resources and Pretium Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turquoise Hill Resources||0||3||3||0||2.50|
Turquoise Hill Resources presently has a consensus target price of $5.00, indicating a potential upside of 55.28%. Pretium Resources has a consensus target price of $15.58, indicating a potential upside of 60.98%. Given Pretium Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Pretium Resources is more favorable than Turquoise Hill Resources.
Earnings & Valuation
This table compares Turquoise Hill Resources and Pretium Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Turquoise Hill Resources||$892.02 million||7.26||$159.41 million||$0.06||53.68|
|Pretium Resources||N/A||N/A||-$16.23 million||($0.16)||-60.50|
Turquoise Hill Resources has higher revenue and earnings than Pretium Resources. Pretium Resources is trading at a lower price-to-earnings ratio than Turquoise Hill Resources, indicating that it is currently the more affordable of the two stocks.
Turquoise Hill Resources beats Pretium Resources on 7 of the 11 factors compared between the two stocks.
About Turquoise Hill Resources
Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).
About Pretium Resources
Pretium Resources Inc. is a Canada-based exploration and development company. The Company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas. The Company’s projects include Brucejack Project and the Snowfield Project, both of which are located in northwestern British Columbia. The Company’s focus is on advancing the Brucejack Project to production as a high-grade gold underground mine. The Brucejack Project is the Company’s material mineral project, which is located approximately 950 kilometers northwest of Vancouver, British Columbia, and over 65 kilometers north-northwest of Stewart, British Columbia. The Brucejack Project consists of approximately four mining leases and over six mineral claims totaling approximately 3,050 hectares in area. The Snowfield Project borders the Brucejack Project to the north and consists of over one mineral claim with an area of approximately 1,267.43 hectares.
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