Critical Comparison: Pure Energy Minerals (OTCMKTS:PEMIF) versus Thunder Mountain Gold (OTCMKTS:THMG)

Pure Energy Minerals (OTCMKTS:PEMIF) and Thunder Mountain Gold (OTCMKTS:THMG) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Valuation & Earnings

This table compares Pure Energy Minerals and Thunder Mountain Gold’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pure Energy Minerals	$400,000.00	23.52	-$260,000.00	($0.01)	-27.69
Thunder Mountain Gold	$300,000.00	8.55	-$820,000.00	($0.01)	-4.22

Pure Energy Minerals has higher revenue and earnings than Thunder Mountain Gold. Pure Energy Minerals is trading at a lower price-to-earnings ratio than Thunder Mountain Gold, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Pure Energy Minerals and Thunder Mountain Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pure Energy Minerals	0	0	0	0	N/A
Thunder Mountain Gold	0	0	0	0	N/A

Institutional & Insider Ownership

0.0% of Thunder Mountain Gold shares are held by institutional investors. 29.5% of Thunder Mountain Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Pure Energy Minerals and Thunder Mountain Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pure Energy Minerals	-113.48%	-1.76%	-1.75%
Thunder Mountain Gold	N/A	-279.78%	-63.02%

Volatility & Risk

Pure Energy Minerals has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Thunder Mountain Gold has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Summary

Pure Energy Minerals beats Thunder Mountain Gold on 6 of the 10 factors compared between the two stocks.

About Pure Energy Minerals

Pure Energy Minerals Limited acquires, explores, and develops mineral properties. Its primary project is the Clayton Valley lithium brine project located in Clayton Valley, Esmeralda County, Nevada. The company was formerly known as Harmony Gold Corp. and changed its name to Pure Energy Minerals Limited in October 2012. Pure Energy Minerals Limited is headquartered in Vancouver, Canada.

About Thunder Mountain Gold

Thunder Mountain Gold, Inc., a mineral exploration stage company, explores for mining properties in Nevada and Idaho. It explores for gold, silver, base metals, and other commodities. The company holds interests in the South Mountain property that includes 17 patented mining claims covering an area of approximately 326 acres; 21 unpatented mining lode claims covering an area of approximately 290 acres; leased private land covering an area of approximately 489 acres; and private land not contiguous with the mining claims covering an area of 360 acres located in Owyhee County, Idaho. It also holds interests in the Trout Creek project, which comprises 26 unpatented mining claims covering an area of approximately 520 acres situated in Lander County, Nevada. The company was incorporated in 1935 and is based in Boise, Idaho.