Head-To-Head Review: Pretium Resources (PVG) & Amerigo Resources (ARREF)

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

Volatility and Risk

Pretium Resources has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500. Comparatively, Amerigo Resources has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Pretium Resources and Amerigo Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pretium Resources 0 2 4 0 2.67
Amerigo Resources 0 0 0 0 N/A

Pretium Resources currently has a consensus target price of $13.50, indicating a potential upside of 67.29%. Given Pretium Resources’ higher possible upside, equities analysts plainly believe Pretium Resources is more favorable than Amerigo Resources.

Profitability

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

Net Margins Return on Equity Return on Assets
Pretium Resources 3.22% 8.67% 4.37%
Amerigo Resources 10.54% 15.04% 6.37%

Institutional and Insider Ownership

53.1% of Pretium Resources shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Pretium Resources and Amerigo Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pretium Resources $177.93 million 8.31 -$16.45 million $0.10 80.70
Amerigo Resources $134.03 million 1.01 $7.98 million $0.04 19.00

Amerigo Resources has lower revenue, but higher earnings than Pretium Resources. Amerigo Resources 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 Amerigo Resources on 7 of the 12 factors compared between the two stocks.

Pretium Resources Company Profile

Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. It primarily explores for gold, silver, and copper deposits. The company's principal project is the Brucejack project comprising 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia. It also owns interest in the Snowfield project consisting of 1 mineral claim covering an area of 1,217 hectares located in northern British Columbia. Pretium Resources Inc. was incorporated in 2010 and is headquartered in Vancouver, Canada.

Amerigo Resources Company Profile

Amerigo Resources Ltd., through its subsidiary, produces and sells copper and molybdenum concentrates from Codelco's El Teniente underground mine in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002. Amerigo Resources Ltd. was founded in 1984 and is headquartered in Vancouver, Canada.

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