Santa Fe Gold (OTCMKTS:SFEG) vs. Mountain Province Diamonds (OTCMKTS:MPVD) Critical Analysis

Santa Fe Gold (OTCMKTS:SFEG) and Mountain Province Diamonds (NASDAQ:MPVD) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares Santa Fe Gold and Mountain Province Diamonds’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Santa Fe Gold N/A N/A $2.38 million N/A N/A
Mountain Province Diamonds $239.94 million 0.85 -$14.61 million $0.06 16.17

Santa Fe Gold has higher earnings, but lower revenue than Mountain Province Diamonds.

Profitability

This table compares Santa Fe Gold and Mountain Province Diamonds’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Santa Fe Gold N/A N/A N/A
Mountain Province Diamonds -5.35% 0.28% 0.14%

Dividends

Mountain Province Diamonds pays an annual dividend of $0.03 per share and has a dividend yield of 3.1%. Santa Fe Gold does not pay a dividend. Mountain Province Diamonds pays out 50.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Santa Fe Gold and Mountain Province Diamonds, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Santa Fe Gold 0 0 0 0 N/A
Mountain Province Diamonds 0 1 0 0 2.00

Mountain Province Diamonds has a consensus target price of $2.80, suggesting a potential upside of 188.69%. Given Mountain Province Diamonds’ higher probable upside, analysts plainly believe Mountain Province Diamonds is more favorable than Santa Fe Gold.

Volatility and Risk

Santa Fe Gold has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500.

Insider & Institutional Ownership

6.4% of Mountain Province Diamonds shares are owned by institutional investors. 3.7% of Santa Fe Gold shares are owned by insiders. Comparatively, 4.8% of Mountain Province Diamonds 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

Mountain Province Diamonds beats Santa Fe Gold on 7 of the 11 factors compared between the two stocks.

Santa Fe Gold Company Profile

Santa Fe Gold Corporation, a mining company, engages in the acquisition, exploration, development, and mining of mineral properties in the United States. The company primarily explores for gold, silver, copper, precious, and industrial and base metals, as well as titanium, rare earth, cobalt, lithium, manganese, and nickel deposits. It owns interests in various claims, including eight advanced projects. The company was founded in 1991 and is based in Albuquerque, New Mexico.

Mountain Province Diamonds Company Profile

Mountain Province Diamonds Inc., through its subsidiaries, focuses on the mining and marketing of rough diamonds worldwide. Its primary asset is its 49% interest in the Gahcho Kué diamond mine located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was founded in 1986 and is headquartered in Toronto, Canada.

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