AfriTin Mining (LON:ATM) and Base Resources (LON:BSE) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Profitability
This table compares AfriTin Mining and Base Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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AfriTin Mining | N/A | N/A | N/A |
Base Resources | N/A | N/A | N/A |
Earnings and Valuation
This table compares AfriTin Mining and Base Resources' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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AfriTin Mining | £1.15 million | 47.79 | N/A | GBX (0.30) | -21.00 |
Base Resources | £197.32 million | 0.92 | N/A | GBX 1.50 | 10.32 |
AfriTin Mining is trading at a lower price-to-earnings ratio than Base Resources, indicating that it is currently the more affordable of the two stocks.
Dividends
AfriTin Mining pays an annual dividend of GBX 0.60 per share and has a dividend yield of 9.5%. Base Resources pays an annual dividend of GBX 0.03 per share and has a dividend yield of 0.2%. AfriTin Mining pays out -200.0% of its earnings in the form of a dividend. Base Resources pays out 1.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AfriTin Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of current ratings and target prices for AfriTin Mining and Base Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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AfriTin Mining | 0 | 0 | 0 | 0 | N/A |
Base Resources | 0 | 0 | 2 | 0 | 3.00 |
Base Resources has a consensus target price of GBX 22, suggesting a potential upside of 42.16%. Given Base Resources' higher probable upside, analysts plainly believe Base Resources is more favorable than AfriTin Mining.
Summary
Base Resources beats AfriTin Mining on 5 of the 8 factors compared between the two stocks.