McEwen (NYSE:MUX – Get Free Report) and Mountain Province Diamonds (OTCMKTS:MPVDF – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Profitability
This table compares McEwen and Mountain Province Diamonds’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| McEwen | 31.40% | 13.65% | 9.05% |
| Mountain Province Diamonds | -117.85% | -72.81% | -19.51% |
Insider and Institutional Ownership
17.0% of McEwen shares are owned by institutional investors. Comparatively, 0.5% of Mountain Province Diamonds shares are owned by institutional investors. 14.8% of McEwen shares are owned by insiders. Comparatively, 4.8% of Mountain Province Diamonds shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Earnings and Valuation
This table compares McEwen and Mountain Province Diamonds”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| McEwen | $197.55 million | 5.52 | $34.43 million | $1.18 | 15.48 |
| Mountain Province Diamonds | $195.36 million | 0.02 | -$58.99 million | ($0.69) | -0.03 |
McEwen has higher revenue and earnings than Mountain Province Diamonds. Mountain Province Diamonds is trading at a lower price-to-earnings ratio than McEwen, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for McEwen and Mountain Province Diamonds, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| McEwen | 0 | 2 | 4 | 0 | 2.67 |
| Mountain Province Diamonds | 0 | 0 | 0 | 0 | 0.00 |
McEwen presently has a consensus target price of $29.83, suggesting a potential upside of 63.33%. Given McEwen’s stronger consensus rating and higher probable upside, research analysts clearly believe McEwen is more favorable than Mountain Province Diamonds.
Summary
McEwen beats Mountain Province Diamonds on 14 of the 14 factors compared between the two stocks.
About McEwen
McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.
About Mountain Province Diamonds
Mountain Province Diamonds Inc. focuses on the mining and marketing of rough diamonds worldwide. The company holds a 49% interest in the Gahcho Kué mine comprising mining leases covering an area of 5,216 hectares; and 100% of the mineral rights of the Kennady North consisting of 22 federal leases and 97 claims covering an area of 113,000 hectares 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 incorporated in 1986 and is headquartered in Toronto, Canada.
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