Gem Diamonds (LON:GEMD) and Metals Exploration (LON:MTL) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings for Gem Diamonds and Metals Exploration, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Gem Diamonds | 0 | 2 | 2 | 0 | 2.50 |
Metals Exploration | 0 | 0 | 0 | 0 | N/A |
Gem Diamonds currently has a consensus target price of GBX 53, suggesting a potential downside of 27.69%. Given Gem Diamonds' higher probable upside, analysts plainly believe Gem Diamonds is more favorable than Metals Exploration.
Earnings & Valuation
This table compares Gem Diamonds and Metals Exploration's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Gem Diamonds | £189.65 million | 0.54 | N/A | GBX 7 | 10.47 |
Metals Exploration | £106.88 million | 0.27 | N/A | GBX 0.70 | 1.96 |
Metals Exploration is trading at a lower price-to-earnings ratio than Gem Diamonds, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gem Diamonds and Metals Exploration's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Gem Diamonds | N/A | N/A | N/A |
Metals Exploration | N/A | N/A | N/A |
Summary
Gem Diamonds beats Metals Exploration on 6 of the 6 factors compared between the two stocks.