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Pretium Resources (NYSE: PVG) and Vale (NYSE:VALE) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Risk & Volatility
Pretium Resources has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500. Comparatively, Vale has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.
Earnings & Valuation
This table compares Pretium Resources and Vale’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pretium Resources||$177.93 million||8.41||-$16.45 million||$0.10||82.00|
|Vale||$33.97 billion||2.25||$5.51 billion||$1.35||10.86|
Vale has higher revenue and earnings than Pretium Resources. Vale is trading at a lower price-to-earnings ratio than Pretium Resources, indicating that it is currently the more affordable of the two stocks.
This table compares Pretium Resources and Vale’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Vale pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Pretium Resources does not pay a dividend. Vale pays out 18.5% of its earnings in the form of a dividend.
Institutional and Insider Ownership
51.1% of Pretium Resources shares are owned by institutional investors. Comparatively, 19.8% of Vale shares are owned by institutional investors. 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.
This is a breakdown of current recommendations for Pretium Resources and Vale, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pretium Resources currently has a consensus price target of $14.00, indicating a potential upside of 70.73%. Vale has a consensus price target of $14.56, indicating a potential downside of 0.71%. Given Pretium Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Pretium Resources is more favorable than Vale.
Vale beats Pretium Resources on 9 of the 15 factors compared between the two stocks.
About Pretium Resources
Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. It primarily explores for gold, silver, and copper deposits. The company's principal project is the Brucejack project comprising 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia. It also owns interest in the Snowfield project consisting of 1 mineral claim covering an area of 1,217 hectares located in northern British Columbia. Pretium Resources Inc. was incorporated in 2010 and is headquartered in Vancouver, Canada.
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pallets for use as raw materials in steelmaking in Brazil and internationally. It operates through Ferrous Minerals, Coal, and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services, as well as engages in the provision of related railroad, port, and terminal logistics services. The Coal segment is involved in the extraction of metallurgical and thermal coal; and provision of related logistic services. The Base Metals segment produces and extracts non-ferrous minerals, including nickel, as well as its by-products, such as ferro-nickel, cobalt, gold, silver, copper, precious metals, and others. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.
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