Critical Analysis: Paladin Energy (OTCMKTS:PALAF) and NioCorp Developments (NASDAQ:NB)

NioCorp Developments (NASDAQ:NBGet Free Report) and Paladin Energy (OTCMKTS:PALAFGet Free Report) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

4.0% of NioCorp Developments shares are held by institutional investors. Comparatively, 0.0% of Paladin Energy shares are held by institutional investors. 8.2% of NioCorp Developments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

NioCorp Developments has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Paladin Energy has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for NioCorp Developments and Paladin Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NioCorp Developments 1 1 3 0 2.40
Paladin Energy 1 0 1 0 2.00

NioCorp Developments currently has a consensus target price of $10.23, indicating a potential upside of 97.17%. Paladin Energy has a consensus target price of $9.70, indicating a potential upside of 38.97%. Given NioCorp Developments’ stronger consensus rating and higher possible upside, analysts clearly believe NioCorp Developments is more favorable than Paladin Energy.

Profitability

This table compares NioCorp Developments and Paladin Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NioCorp Developments N/A -12.69% -11.11%
Paladin Energy -7.08% -1.90% -1.44%

Earnings & Valuation

This table compares NioCorp Developments and Paladin Energy”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NioCorp Developments N/A N/A -$17.41 million ($0.68) -7.63
Paladin Energy $177.68 million 17.65 -$44.64 million ($0.05) -139.60

NioCorp Developments has higher earnings, but lower revenue than Paladin Energy. Paladin Energy is trading at a lower price-to-earnings ratio than NioCorp Developments, indicating that it is currently the more affordable of the two stocks.

Summary

NioCorp Developments beats Paladin Energy on 8 of the 13 factors compared between the two stocks.

About NioCorp Developments

(Get Free Report)

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 Paladin Energy

(Get Free Report)

Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.

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