Reviewing Impala Platinum (OTCMKTS:IMPUY) and NexGen Energy (NYSE:NXE)

Impala Platinum (OTCMKTS:IMPUY) and NexGen Energy (NYSE:NXE) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Impala Platinum and NexGen Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impala Platinum	0	1	2	0	2.67
NexGen Energy	1	1	4	0	2.50

Impala Platinum presently has a consensus target price of $23.00, suggesting a potential upside of 81.10%. Given Impala Platinum’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Impala Platinum is more favorable than NexGen Energy.

Profitability

This table compares Impala Platinum and NexGen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Impala Platinum	N/A	N/A	N/A
NexGen Energy	N/A	-13.11%	-8.91%

Risk and Volatility

Impala Platinum has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, NexGen Energy has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Impala Platinum and NexGen Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impala Platinum	$4.71 billion	2.42	$41.85 million	N/A	N/A
NexGen Energy	N/A	N/A	-$221.63 million	($0.49)	-21.42

Impala Platinum has higher revenue and earnings than NexGen Energy.

Insider & Institutional Ownership

42.4% of NexGen Energy shares are held by institutional investors. 5.6% of NexGen Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Impala Platinum beats NexGen Energy on 6 of the 10 factors compared between the two stocks.

About Impala Platinum

Impala Platinum Holdings Limited engages in the mining, processing, concentrating, refining, and sale of platinum group metals (PGMs) and associated base metals. The company produces platinum, palladium, rhodium, nickel, and by-products, as well as ruthenium, iridium, and gold. It has operations on the PGM-bearing orebodies, including the Bushveld Complex located in South Africa; and the Great Dyke situated in Zimbabwe, as well as the Canadian Shield. The company markets and sells its products in South Africa, Japan, China, the United States, and Europe. Impala Platinum Holdings Limited was incorporated in 1957 and is based in Sandton, South Africa.

About NexGen Energy

NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.