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

Profitability

This table compares Pretium Resources and Seabridge Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pretium Resources N/A -2.05% -1.14%
Seabridge Gold N/A -1.98% -1.83%

Institutional & Insider Ownership

43.3% of Pretium Resources shares are held by institutional investors. Comparatively, 25.9% of Seabridge Gold shares are held by institutional investors. 12.8% of Seabridge Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Pretium Resources has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pretium Resources and Seabridge Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 1 5 0 2.83
Seabridge Gold 0 0 0 0 N/A

Pretium Resources currently has a consensus price target of $15.58, suggesting a potential upside of 63.86%. Given Pretium Resources’ higher possible upside, analysts clearly believe Pretium Resources is more favorable than Seabridge Gold.

Earnings & Valuation

This table compares Pretium Resources and Seabridge Gold’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pretium Resources N/A N/A -$16.23 million ($0.16) -59.44
Seabridge Gold N/A N/A -$9.54 million ($0.08) -153.75

Seabridge Gold is trading at a lower price-to-earnings ratio than Pretium Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Pretium Resources beats Seabridge Gold on 5 of the 9 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 Seabridge Gold

Seabridge Gold Inc. (Seabridge) is a development-stage company. The Company is engaged in the acquisition and exploration of gold properties located in North America. As of December 31, 2016, the Company owned six properties with gold resources. Its material properties are its Kerr-Sulphurets-Mitchell (KSM) Project and its Courageous Lake Project. Its KSM Project is located within the Iskut-Stikine region of British Columbia, approximately 21 kilometers south-southeast of the former Eskay Creek Mine and approximately 65 kilometers north-northwest of Stewart, British Columbia. As of December 31, 2016, the KSM property consisted of three discontinuous claim blocks. These claim blocks are referred to as the KSM claim group; the Seabee/Tina claims, and the KSM placer claim block. As of December 31, 2016, the two claim blocks (KSM and Seabee/Tina) contained two mineral leases and 73 mineral claims, consisting of both cell and legacy claims.

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