Nexa Resources (NYSE: NEXA) and Pretium Resources (NYSE:PVG) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares Nexa Resources and Pretium Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexa Resources $1.91 billion 1.02 $93.16 million $0.58 29.88
Pretium Resources N/A N/A -$60.72 million ($0.12) -88.42

Nexa Resources has higher revenue and earnings than Pretium Resources. Pretium Resources is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nexa Resources and Pretium Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexa Resources 2.88% 2.16% 1.09%
Pretium Resources N/A -0.59% -0.31%

Institutional and Insider Ownership

49.1% of Pretium Resources shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Nexa Resources and Pretium Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexa Resources 0 0 5 0 3.00
Pretium Resources 0 0 7 0 3.00

Nexa Resources presently has a consensus target price of $21.52, indicating a potential upside of 24.18%. Pretium Resources has a consensus target price of $15.50, indicating a potential upside of 46.09%. Given Pretium Resources’ higher possible upside, analysts clearly believe Pretium Resources is more favorable than Nexa Resources.

Summary

Nexa Resources beats Pretium Resources on 6 of the 9 factors compared between the two stocks.

About Nexa Resources

Nexa Resources SA, formerly VM Holding SA, is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

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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