NextSource Materials (OTCMKTS:NSRCF) and Sandstorm Gold (NYSE:SAND) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
This table compares NextSource Materials and Sandstorm Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
39.0% of Sandstorm Gold shares are held by institutional investors. 4.6% of NextSource Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
NextSource Materials has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Sandstorm Gold has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
This is a breakdown of recent recommendations for NextSource Materials and Sandstorm Gold, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sandstorm Gold has a consensus price target of $12.65, indicating a potential upside of 52.23%. Given Sandstorm Gold’s higher probable upside, analysts plainly believe Sandstorm Gold is more favorable than NextSource Materials.
Earnings & Valuation
This table compares NextSource Materials and Sandstorm Gold’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sandstorm Gold||$89.43 million||18.08||$16.40 million||$0.09||92.33|
Sandstorm Gold has higher revenue and earnings than NextSource Materials.
Sandstorm Gold beats NextSource Materials on 8 of the 10 factors compared between the two stocks.
About NextSource Materials
NextSource Materials Inc., together with its subsidiaries, acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily holds a 100% interest in the Molo Graphite property that includes 2,119 permits covering an area of 827.7 square kilometers located in Southern Madagascar Region, Madagascar. It also holds 100% interest in the Green Giant Vanadium Project situated in Southern Madagascar Region, Madagascar; and Sagar property that includes 184 claims covering a total area of 8,539.58 hectares situated in the Labrador Trough Region, Quebec, Canada. The company was formerly known as Energizer Resources Inc. and changed its name to NextSource Materials Inc. in April 2017. NextSource Materials Inc. was founded in 2004 and is headquartered in Toronto, Canada.
About Sandstorm Gold
Sandstorm Gold Ltd. operates as a gold royalty company. It focuses on acquiring gold and other metal purchase agreements and royalties from companies that have advanced stage development projects or operating mines. The company offers upfront payments for companies to acquire a gold stream or royalty and receives the right to purchase a percentage of a mine's production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. It has a portfolio of 201 streams and royalties. The company has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Paraguay, Egypt, Ethiopia, Guyana, French Guiana, Turkey, Sweden, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.
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