Gem Diamonds (LON:GEMD) and Premier African Minerals (LON:PREM) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Earnings and Valuation
This table compares Gem Diamonds and Premier African Minerals' 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 | 0.49 | N/A | GBX 6.90 | 9.62 |
Premier African Minerals | £2,000.00 | 16,992.32 | N/A | GBX 0.10 | 1.91 |
Premier African Minerals is trading at a lower price-to-earnings ratio than Gem Diamonds, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Gem Diamonds and Premier African Minerals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Gem Diamonds | 0 | 2 | 2 | 0 | 2.50 |
Premier African Minerals | 0 | 0 | 0 | 0 | N/A |
Gem Diamonds currently has a consensus target price of GBX 53, suggesting a potential downside of 21.83%. Given Gem Diamonds' higher probable upside, equities research analysts clearly believe Gem Diamonds is more favorable than Premier African Minerals.
Profitability
This table compares Gem Diamonds and Premier African Minerals' 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 |
Premier African Minerals | N/A | N/A | N/A |
Summary
Gem Diamonds beats Premier African Minerals on 5 of the 6 factors compared between the two stocks.