Stillwater Mining (SWC) and Mountain Province Diamonds (MPVD) Critical Survey

Stillwater Mining (NYSE: SWC) and Mountain Province Diamonds (NASDAQ:MPVD) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability



This table compares Stillwater Mining and Mountain Province Diamonds’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stillwater Mining 2.80% 2.63% 1.83%
Mountain Province Diamonds N/A -2.64% -1.03%

Risk & Volatility

Stillwater Mining has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Stillwater Mining and Mountain Province Diamonds, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stillwater Mining 0 2 1 0 2.33
Mountain Province Diamonds 0 0 0 0 N/A

Stillwater Mining presently has a consensus target price of $18.67, suggesting a potential upside of 3.70%. Given Stillwater Mining’s higher probable upside, equities analysts clearly believe Stillwater Mining is more favorable than Mountain Province Diamonds.

Institutional and Insider Ownership

89.3% of Stillwater Mining shares are owned by institutional investors. Comparatively, 26.3% of Mountain Province Diamonds shares are owned by institutional investors. 0.2% of Stillwater Mining shares are owned by company insiders. Comparatively, 4.8% of Mountain Province Diamonds shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Stillwater Mining and Mountain Province Diamonds’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stillwater Mining N/A N/A N/A $0.07 257.14
Mountain Province Diamonds $22.75 million 19.72 $6.31 million ($0.03) -93.33

Mountain Province Diamonds has higher revenue and earnings than Stillwater Mining. Mountain Province Diamonds is trading at a lower price-to-earnings ratio than Stillwater Mining, indicating that it is currently the more affordable of the two stocks.

Summary

Stillwater Mining beats Mountain Province Diamonds on 8 of the 10 factors compared between the two stocks.

Stillwater Mining Company Profile

Stillwater Mining Company is engaged in the development, extraction, processing, smelting and refining of palladium, platinum and associated metals (platinum group metals (PGMs)) produced by mining a geological formation in south-central Montana, known as the J-M Reef. The Company operates through five segments: Mine Production, PGM Recycling, Canadian Properties, South American Properties and All Other. The Company is engaged in recycling spent catalytic converters and other industrial sources. The Company is also engaged in expanding its mining development along the J-M Reef, and holds exploration-stage properties at the Marathon PGM copper property, adjacent to Lake Superior in northern Ontario, Canada (Marathon), and at the Altar copper-gold property in San Juan province, Argentina. In addition to palladium and platinum, the Company’s operations produce associated by-product metals, including nickel, copper and minor amounts of gold, silver and rhodium.

Mountain Province Diamonds Company Profile

Mountain Province Diamonds Inc. is a resource company. The Company is focused on the mining and marketing of rough diamonds to the global market. The Company holds interests in the GK Diamond Mine. The GK Diamond Mine is located in the Northwest Territories (NWT) of Canada, in the District of Mackenzie, 300 kilometers east-northeast of Yellowknife and 80 kilometers east-southeast of the Snap Lake Mine. The GK Diamond Mine includes various kimberlite deposits, such as 5034, Hearne, Tesla and Tuzo. The GK Diamond Mine covers approximately 10,350 acres. The GK Diamond Mine includes four mining leases (numbers 4341, 4199, 4200 and 4201).

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