Contrasting NextSource Materials (OTCMKTS:NSRCF) & Newmont (NYSE:NEM)


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NextSource Materials (OTCMKTS:NSRCF) and Newmont (NYSE:NEM) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NextSource Materials and Newmont, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NextSource Materials 0 0 0 0 N/A
Newmont 0 4 9 0 2.69

Newmont has a consensus target price of $73.08, indicating a potential upside of 14.15%. Given Newmont’s higher probable upside, analysts plainly believe Newmont is more favorable than NextSource Materials.

Profitability

This table compares NextSource Materials and Newmont’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NextSource Materials N/A N/A -188.63%
Newmont 23.19% 7.37% 4.22%

Valuation and Earnings

This table compares NextSource Materials and Newmont’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NextSource Materials N/A N/A -$980,000.00 N/A N/A
Newmont $9.74 billion 5.27 $2.81 billion $1.32 48.50

Newmont has higher revenue and earnings than NextSource Materials.

Volatility and Risk

NextSource Materials has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Newmont has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Institutional & Insider Ownership

79.2% of Newmont shares are owned by institutional investors. 4.6% of NextSource Materials shares are owned by insiders. Comparatively, 0.3% of Newmont shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Newmont beats NextSource Materials on 8 of the 10 factors compared between the two stocks.

About NextSource Materials

NextSource Materials Inc., together with its subsidiaries, acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily holds a 100% interest in the Molo Graphite property that includes 2,119 permits covering an area of 827.7 square kilometers located in Southern Madagascar Region, Madagascar. It also holds 100% interest in the Green Giant Vanadium Project situated in Southern Madagascar Region, Madagascar; and Sagar property that includes 184 claims covering a total area of 8,539.58 hectares situated in the Labrador Trough Region, Quebec, Canada. The company was formerly known as Energizer Resources Inc. and changed its name to NextSource Materials Inc. in April 2017. NextSource Materials Inc. was founded in 2004 and is headquartered in Toronto, Canada.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of December 31, 2020, it had proven and probable gold reserves of 94.2 million ounces and land position of 58,900 square kilometers. The company was founded in 1916 and is headquartered in Denver, Colorado.

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