Tahoe Resources (OTCMKTS: PPPMF) and Primero Mining (OTCMKTS:PPPMF) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Tahoe Resources and Primero Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tahoe Resources -9.04% -1.80% -1.53%
Primero Mining -412.11% -10.42% -3.82%

Institutional and Insider Ownership

64.6% of Tahoe Resources shares are held by institutional investors. Comparatively, 9.5% of Primero Mining shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Tahoe Resources has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Primero Mining has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Tahoe Resources and Primero Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tahoe Resources 0 2 2 0 2.50
Primero Mining 0 1 0 0 2.00

Tahoe Resources currently has a consensus target price of $7.50, suggesting a potential upside of 162.24%. Given Tahoe Resources’ stronger consensus rating and higher possible upside, equities analysts clearly believe Tahoe Resources is more favorable than Primero Mining.

Earnings and Valuation

This table compares Tahoe Resources and Primero Mining’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tahoe Resources $733.60 million 1.22 $81.79 million $0.27 10.59
Primero Mining $91.77 million 0.49 -$409.68 million N/A N/A

Tahoe Resources has higher revenue and earnings than Primero Mining.

Summary

Tahoe Resources beats Primero Mining on 10 of the 11 factors compared between the two stocks.

About Tahoe Resources

Tahoe Resources Inc., together with its subsidiaries, acquires, explores for, develops, and operates mineral properties in the Americas. It explores for silver, gold, lead, zinc, and copper deposits, as well as precious metals assets. The company holds interest in the La Arena gold mine located in the Huamachuco district of northern Peru; Shahuindo mine located in the province of Cajabamba in northern Peru; and La Arena II, a copper-gold porphyry deposit located in Peru. It also holds interest in the Timmins mines, including the Bell Creek and Timmins West mines, the Fenn-Gib project, the Juby project, the Vogel project, and the Gold River project located in Timmins, Ontario. The company was formerly known as CKM Resources Inc. and changed its name to Tahoe Resources Inc. in January 2010. Tahoe Resources Inc. was incorporated in 2009 and is headquartered in Reno, Nevada.

About Primero Mining

Primero Mining Corp. is a Canadian-based precious metals producer with mining operations in Mexico. The company focuses on building a portfolio of precious metals assets in the Americas through acquiring, exploring, developing and operating mineral resource properties. Its properties include San Dimas gold-silver Mine. The company was founded by Wade D. Nesmith on November 26, 2007 and is headquartered in Vancouver, Canada.

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