A-Mark Precious Metals (AMRK) and Pretium Resources (PVG) Critical Survey
Pretium Resources (NYSE: PVG) and A-Mark Precious Metals (NASDAQ:AMRK) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Pretium Resources does not pay a dividend. A-Mark Precious Metals pays out 40.5% of its earnings in the form of a dividend.
Volatility and Risk
Pretium Resources has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, A-Mark Precious Metals has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.
This table compares Pretium Resources and A-Mark Precious Metals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|A-Mark Precious Metals||0.08%||7.75%||1.09%|
This is a breakdown of recent ratings and recommmendations for Pretium Resources and A-Mark Precious Metals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|A-Mark Precious Metals||0||1||1||1||3.00|
Pretium Resources currently has a consensus price target of $15.75, suggesting a potential upside of 47.75%. A-Mark Precious Metals has a consensus price target of $20.90, suggesting a potential upside of 42.95%. Given Pretium Resources’ higher probable upside, analysts clearly believe Pretium Resources is more favorable than A-Mark Precious Metals.
Earnings & Valuation
This table compares Pretium Resources and A-Mark Precious Metals’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pretium Resources||N/A||N/A||-$60.72 million||($0.12)||-88.83|
|A-Mark Precious Metals||$6.99 billion||0.01||$7.08 million||$0.79||18.51|
A-Mark Precious Metals has higher revenue and earnings than Pretium Resources. Pretium Resources is trading at a lower price-to-earnings ratio than A-Mark Precious Metals, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
49.1% of Pretium Resources shares are owned by institutional investors. Comparatively, 19.7% of A-Mark Precious Metals shares are owned by institutional investors. 38.8% of A-Mark Precious Metals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
A-Mark Precious Metals beats Pretium Resources on 9 of the 14 factors compared between the two stocks.
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.
About A-Mark Precious Metals
A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.
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