Alderon Iron Ore (OTCMKTS:AXXDF) and Mountain Province Diamonds (NASDAQ:MPVD) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Institutional and Insider Ownership
9.8% of Mountain Province Diamonds shares are held by institutional investors. 4.8% of Mountain Province Diamonds 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.
This table compares Alderon Iron Ore and Mountain Province Diamonds’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alderon Iron Ore||N/A||-4.86%||-3.74%|
|Mountain Province Diamonds||-1.61%||-0.97%||-0.45%|
Mountain Province Diamonds pays an annual dividend of $0.03 per share and has a dividend yield of 2.5%. Alderon Iron Ore does not pay a dividend. Mountain Province Diamonds pays out 37.5% of its earnings in the form of a dividend.
Volatility & Risk
Alderon Iron Ore has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Alderon Iron Ore and Mountain Province Diamonds, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alderon Iron Ore||0||0||0||0||N/A|
|Mountain Province Diamonds||0||1||0||0||2.00|
Mountain Province Diamonds has a consensus target price of $2.80, indicating a potential upside of 133.33%. Given Mountain Province Diamonds’ higher probable upside, analysts plainly believe Mountain Province Diamonds is more favorable than Alderon Iron Ore.
Earnings and Valuation
This table compares Alderon Iron Ore and Mountain Province Diamonds’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alderon Iron Ore||N/A||N/A||-$74.90 million||N/A||N/A|
|Mountain Province Diamonds||$131.15 million||1.92||$13.23 million||$0.08||15.00|
Mountain Province Diamonds has higher revenue and earnings than Alderon Iron Ore.
Mountain Province Diamonds beats Alderon Iron Ore on 8 of the 11 factors compared between the two stocks.
About Alderon Iron Ore
Alderon Iron Ore Corp. engages in the acquisition, exploration, and development of mineral properties. Its principal asset is the Kami iron ore project that comprises 283 claim units covering an area of 7,075 hectares located in Western Labrador, Canada. The company was formerly known as Alderon Resource Corp. and changed its name to Alderon Iron Ore Corp. in September 2011. Alderon Iron Ore Corp. was incorporated in 1978 and is headquartered in Vancouver, Canada.
About Mountain Province Diamonds
Mountain Province Diamonds Inc., through its wholly owned subsidiaries, focuses on the mining and marketing of rough diamonds worldwide. The company's primary asset is its 49% interest in the Gahcho Kué project comprising four mining leases covering an area of approximately 10,353 acres 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 founded in 1986 and is headquartered in Toronto, Canada.
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