Mountain Province Diamonds (OTCMKTS:MPVDF – Get Free Report) and American Resources (NASDAQ:AREC – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
Profitability
This table compares Mountain Province Diamonds and American Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mountain Province Diamonds | -75.42% | -51.26% | -16.31% |
| American Resources | -13,152.00% | N/A | -21.17% |
Insider and Institutional Ownership
0.5% of Mountain Province Diamonds shares are held by institutional investors. Comparatively, 9.3% of American Resources shares are held by institutional investors. 4.8% of Mountain Province Diamonds shares are held by insiders. Comparatively, 16.8% of American Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mountain Province Diamonds | $195.36 million | 0.03 | -$58.99 million | ($0.52) | -0.06 |
| American Resources | $330,304.00 | 519.99 | -$40.11 million | ($0.49) | -4.14 |
American Resources has lower revenue, but higher earnings than Mountain Province Diamonds. American Resources is trading at a lower price-to-earnings ratio than Mountain Province Diamonds, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Mountain Province Diamonds and American Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mountain Province Diamonds | 0 | 0 | 0 | 0 | 0.00 |
| American Resources | 0 | 0 | 2 | 0 | 3.00 |
American Resources has a consensus target price of $4.00, suggesting a potential upside of 97.04%. Given American Resources’ stronger consensus rating and higher probable upside, analysts plainly believe American Resources is more favorable than Mountain Province Diamonds.
Volatility and Risk
Mountain Province Diamonds has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, American Resources has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Summary
American Resources beats Mountain Province Diamonds on 9 of the 14 factors compared between the two stocks.
About Mountain Province Diamonds
Mountain Province Diamonds Inc. focuses on the mining and marketing of rough diamonds worldwide. The company holds a 49% interest in the Gahcho Kué mine comprising mining leases covering an area of 5,216 hectares; and 100% of the mineral rights of the Kennady North consisting of 22 federal leases and 97 claims covering an area of 113,000 hectares located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.
About American Resources
American Resources Corporation, together with its subsidiaries, extracts, processes, transports, and sells metallurgical coal to the steel and industrial industries. It supplies raw materials; and sells coal used in pulverized coal injections. The company was founded in 2006 and is headquartered in Fishers, Indiana.
Receive News & Ratings for Mountain Province Diamonds Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mountain Province Diamonds and related companies with MarketBeat.com's FREE daily email newsletter.
