Contrasting Mountain Province Diamonds (NASDAQ:MDM) & Stillwater Mining (SWC)

Mountain Province Diamonds (NASDAQ: MDM) and Stillwater Mining (NYSE:SWC) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Mountain Province Diamonds and Stillwater Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mountain Province Diamonds 0 2 1 0 2.33
Stillwater Mining 0 2 1 0 2.33

Mountain Province Diamonds currently has a consensus price target of $7.50, indicating a potential upside of 47.06%. Stillwater Mining has a consensus price target of $18.67, indicating a potential upside of 3.70%. Given Mountain Province Diamonds’ higher probable upside, research analysts clearly believe Mountain Province Diamonds is more favorable than Stillwater Mining.

Volatility and Risk

Mountain Province Diamonds has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Stillwater Mining has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Institutional and Insider Ownership

22.7% of Mountain Province Diamonds shares are held by institutional investors. Comparatively, 89.3% of Stillwater Mining shares are held by institutional investors. 4.8% of Mountain Province Diamonds shares are held by insiders. Comparatively, 0.2% of Stillwater Mining shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Mountain Province Diamonds and Stillwater Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mountain Province Diamonds N/A -10.46% -4.34%
Stillwater Mining 2.80% 2.63% 1.83%

Valuation & Earnings

This table compares Mountain Province Diamonds and Stillwater Mining’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mountain Province Diamonds N/A N/A N/A $0.02 255.00
Stillwater Mining N/A N/A N/A $0.07 257.14

Mountain Province Diamonds is trading at a lower price-to-earnings ratio than Stillwater Mining, indicating that it is currently the more affordable of the two stocks.

Summary

Stillwater Mining beats Mountain Province Diamonds on 6 of the 8 factors compared between the two stocks.

Mountain Province Diamonds Company Profile

Mountain Province Diamonds Inc. is a resource company. The Company is focused on the mining and marketing of rough diamonds to the global market. The Company holds interests in the GK Diamond Mine. The GK Diamond Mine is located in the Northwest Territories (NWT) of Canada, in the District of Mackenzie, 300 kilometers east-northeast of Yellowknife and 80 kilometers east-southeast of the Snap Lake Mine. The GK Diamond Mine includes various kimberlite deposits, such as 5034, Hearne, Tesla and Tuzo. The GK Diamond Mine covers approximately 10,350 acres. The GK Diamond Mine includes four mining leases (numbers 4341, 4199, 4200 and 4201).

Stillwater Mining Company Profile

Stillwater Mining Company is engaged in the development, extraction, processing, smelting and refining of palladium, platinum and associated metals (platinum group metals (PGMs)) produced by mining a geological formation in south-central Montana, known as the J-M Reef. The Company operates through five segments: Mine Production, PGM Recycling, Canadian Properties, South American Properties and All Other. The Company is engaged in recycling spent catalytic converters and other industrial sources. The Company is also engaged in expanding its mining development along the J-M Reef, and holds exploration-stage properties at the Marathon PGM copper property, adjacent to Lake Superior in northern Ontario, Canada (Marathon), and at the Altar copper-gold property in San Juan province, Argentina. In addition to palladium and platinum, the Company’s operations produce associated by-product metals, including nickel, copper and minor amounts of gold, silver and rhodium.

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