Reviewing Ivanhoe Mines (OTCMKTS:IVPAF) and Tredegar (NYSE:TG)

Ivanhoe Mines (OTCMKTS:IVPAF) and Tredegar (NYSE:TG) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Ivanhoe Mines and Tredegar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ivanhoe Mines	0	6	2	1	2.44
Tredegar	0	1	0	0	2.00

Ivanhoe Mines currently has a consensus price target of $15.20, indicating a potential upside of 169.03%. Given Ivanhoe Mines’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Ivanhoe Mines is more favorable than Tredegar.

Volatility & Risk

Ivanhoe Mines has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Tredegar has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Ivanhoe Mines and Tredegar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ivanhoe Mines	21.53%	5.35%	4.01%
Tredegar	2.95%	9.40%	5.29%

Insider & Institutional Ownership

79.2% of Tredegar shares are owned by institutional investors. 2.5% of Tredegar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ivanhoe Mines and Tredegar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ivanhoe Mines	$441.61 million	18.25	$261.55 million	$0.11	51.36
Tredegar	$793.97 million	0.25	$33.48 million	$0.68	8.49

Ivanhoe Mines has higher earnings, but lower revenue than Tredegar. Tredegar is trading at a lower price-to-earnings ratio than Ivanhoe Mines, indicating that it is currently the more affordable of the two stocks.

Summary

Ivanhoe Mines beats Tredegar on 9 of the 15 factors compared between the two stocks.

About Ivanhoe Mines

Ivanhoe Mines is a Canadian mining company focused on discovering, developing and operating mineral projects in Africa. Its main commodities include copper, zinc and platinum-group metals. The company’s projects include the Kamoa-Kakula copper complex and the Kipushi zinc-copper mine in the Democratic Republic of the Congo, as well as the Platreef platinum-group metals, nickel, copper and gold project in South Africa. Founded by mining entrepreneur Robert Friedland, Ivanhoe Mines was previously known as Ivanhoe Mines Ltd. and has developed its portfolio through exploration and partnerships.

About Tredegar

Tredegar Corporation is a manufacturer of specialty films and aluminum extrusions. The company develops and produces polyethylene and other plastic films used in personal care, hygiene, medical, food packaging, household and industrial applications. Its flexible packaging products are designed to provide barrier, sealing and performance characteristics for packaged goods. Through its aluminum operations, including Bonnell Aluminum, Tredegar produces extruded and fabricated aluminum components for building and construction, transportation, automotive, consumer durables and other industrial markets.