NioCorp Developments (NASDAQ:NB – Get Free Report) and Amerigo Resources (OTCMKTS:ARREF – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Insider and Institutional Ownership
4.0% of NioCorp Developments shares are owned by institutional investors. 19.1% of NioCorp Developments shares are owned by insiders. Comparatively, 19.3% of Amerigo Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares NioCorp Developments and Amerigo Resources”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NioCorp Developments | N/A | N/A | -$11.44 million | ($0.77) | -3.00 |
| Amerigo Resources | $157.46 million | 1.31 | $3.38 million | $0.13 | 9.62 |
Amerigo Resources has higher revenue and earnings than NioCorp Developments. NioCorp Developments is trading at a lower price-to-earnings ratio than Amerigo Resources, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for NioCorp Developments and Amerigo Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NioCorp Developments | 0 | 0 | 2 | 0 | 3.00 |
| Amerigo Resources | 0 | 0 | 0 | 0 | 0.00 |
NioCorp Developments currently has a consensus target price of $4.13, suggesting a potential upside of 78.57%. Given NioCorp Developments’ stronger consensus rating and higher probable upside, research analysts clearly believe NioCorp Developments is more favorable than Amerigo Resources.
Volatility and Risk
NioCorp Developments has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500. Comparatively, Amerigo Resources has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500.
Profitability
This table compares NioCorp Developments and Amerigo Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NioCorp Developments | N/A | -1,273.17% | -140.97% |
| Amerigo Resources | 11.23% | 19.30% | 10.27% |
Summary
Amerigo Resources beats NioCorp Developments on 9 of the 13 factors compared between the two stocks.
About NioCorp Developments
NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.
About Amerigo Resources
Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., engages in the production and sale of 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. The company was incorporated in 1984 and is headquartered in Vancouver, Canada.
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