Regulus Resources (CVE:REG) and Sherritt International (TSE:S) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Valuation and Earnings
This table compares Regulus Resources and Sherritt International's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Regulus Resources | N/A | N/A | N/A | C($0.06) | -16.18 |
Sherritt International | C$119.80 million | 1.69 | C$22.25 million | C$0.06 | 9.11 |
Sherritt International has higher revenue and earnings than Regulus Resources. Regulus Resources is trading at a lower price-to-earnings ratio than Sherritt International, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Regulus Resources and Sherritt International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Regulus Resources | 0 | 0 | 0 | 0 | N/A |
Sherritt International | 0 | 2 | 0 | 0 | 2.00 |
Sherritt International has a consensus price target of C$0.37, indicating a potential downside of 28.10%. Given Sherritt International's higher possible upside, analysts clearly believe Sherritt International is more favorable than Regulus Resources.
Profitability
This table compares Regulus Resources and Sherritt International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Regulus Resources | N/A | N/A | N/A |
Sherritt International | N/A | N/A | N/A |
Summary
Sherritt International beats Regulus Resources on 4 of the 4 factors compared between the two stocks.