Mountain Province Diamonds (NASDAQ: MPVD) and Centamin (OTCMKTS:CELTF) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Centamin pays an annual dividend of $0.20 per share and has a dividend yield of 9.4%. Mountain Province Diamonds does not pay a dividend. Centamin pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Mountain Province Diamonds and Centamin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mountain Province Diamonds||N/A||5.33%||2.07%|
Earnings & Valuation
This table compares Mountain Province Diamonds and Centamin’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mountain Province Diamonds||$131.15 million||3.02||$13.23 million||$0.08||30.88|
|Centamin||$687.39 million||3.57||$266.00 million||$0.21||10.14|
Centamin has higher revenue and earnings than Mountain Province Diamonds. Centamin is trading at a lower price-to-earnings ratio than Mountain Province Diamonds, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Mountain Province Diamonds and Centamin, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mountain Province Diamonds||0||0||0||0||N/A|
Volatility and Risk
Mountain Province Diamonds has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Centamin has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Institutional and Insider Ownership
23.5% of Mountain Province Diamonds shares are owned by institutional investors. 4.8% of Mountain Province Diamonds shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Centamin beats Mountain Province Diamonds on 9 of the 13 factors compared between the two stocks.
About Mountain Province Diamonds
Mountain Province Diamonds Inc., through its wholly owned subsidiaries, focuses on the mining and marketing of rough diamonds worldwide. The company's primary asset is its 49% interest in the Gahcho Kué project comprising four mining leases covering an area of approximately 10,353 acres located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was founded in 1986 and is headquartered in Toronto, Canada.
Centamin plc, together with its subsidiaries, engages in the exploration, mining, and development of precious metals in Egypt, Burkina Faso, Côte dIvoire, United Kingdom, and Australia. The company explores for gold ore deposits. It primarily holds interest in the Sukari Gold Mine project, which covers an area of 160 square kilometers located in the south-easterly region of the Eastern Desert, Egypt. The company was incorporated in 1970 and is based in St Helier, the Channel Islands.
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