PHX Energy Services (TSE:PHX) and Wallbridge Mining (TSE:WM) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
Analyst Ratings
This is a summary of current ratings and target prices for PHX Energy Services and Wallbridge Mining, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| PHX Energy Services | 0 | 0 | 3 | 0 | 3.00 |
| Wallbridge Mining | 0 | 0 | 0 | 0 | N/A |
PHX Energy Services currently has a consensus price target of C$2.60, indicating a potential downside of 20.00%. Wallbridge Mining has a consensus price target of C$1.50, indicating a potential upside of 130.77%. Given Wallbridge Mining's higher probable upside, analysts plainly believe Wallbridge Mining is more favorable than PHX Energy Services.
Earnings and Valuation
This table compares PHX Energy Services and Wallbridge Mining's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| PHX Energy Services | C$233.73 million | 0.70 | C$-7,424,420.00 | C($0.15) | -21.96 |
| Wallbridge Mining | N/A | N/A | N/A | C($0.03) | -21.72 |
Wallbridge Mining has lower revenue, but higher earnings than PHX Energy Services. PHX Energy Services is trading at a lower price-to-earnings ratio than Wallbridge Mining, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PHX Energy Services and Wallbridge Mining's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| PHX Energy Services | N/A | N/A | N/A |
| Wallbridge Mining | N/A | N/A | N/A |
Dividends
PHX Energy Services pays an annual dividend of C$0.03 per share and has a dividend yield of 0.8%. Wallbridge Mining pays an annual dividend of C$1.86 per share and has a dividend yield of 295.2%. PHX Energy Services pays out -16.9% of its earnings in the form of a dividend. Wallbridge Mining pays out -6,413.8% 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. Wallbridge Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Wallbridge Mining beats PHX Energy Services on 5 of the 7 factors compared between the two stocks.
