Erdene Resource Development (TSE:ERD) and Northern Dynasty Minerals (TSE:NDM) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Erdene Resource Development and Northern Dynasty Minerals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Erdene Resource Development | N/A | N/A | N/A |
Northern Dynasty Minerals | N/A | N/A | N/A |
Valuation and Earnings
This table compares Erdene Resource Development and Northern Dynasty Minerals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Erdene Resource Development | N/A | N/A | N/A | C($0.06) | -5.90 |
Northern Dynasty Minerals | N/A | N/A | N/A | C($0.14) | -4.96 |
Erdene Resource Development is trading at a lower price-to-earnings ratio than Northern Dynasty Minerals, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Erdene Resource Development and Northern Dynasty Minerals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Erdene Resource Development | 0 | 0 | 0 | 0 | N/A |
Northern Dynasty Minerals | 0 | 1 | 0 | 0 | 2.00 |
Northern Dynasty Minerals has a consensus price target of C$2.33, indicating a potential upside of 247.01%. Given Northern Dynasty Minerals' higher probable upside, analysts plainly believe Northern Dynasty Minerals is more favorable than Erdene Resource Development.
Summary
Northern Dynasty Minerals beats Erdene Resource Development on 2 of the 3 factors compared between the two stocks.