Financial Analysis: Primero Mining Corp (PPP) vs. Paramount Gold Nevada Corp (PZG)

Primero Mining Corp (NYSE: PPP) and Paramount Gold Nevada Corp (NYSE:PZG) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Profitability

This table compares Primero Mining Corp and Paramount Gold Nevada Corp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primero Mining Corp	-299.62%	-2.89%	-1.90%
Paramount Gold Nevada Corp	-599.29%	-11.32%	-10.95%

Institutional and Insider Ownership

42.0% of Primero Mining Corp shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Primero Mining Corp and Paramount Gold Nevada Corp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primero Mining Corp	1	2	1	0	2.00
Paramount Gold Nevada Corp	0	0	1	0	3.00

Primero Mining Corp presently has a consensus price target of $2.25, suggesting a potential upside of 1,332.21%. Paramount Gold Nevada Corp has a consensus price target of $2.00, suggesting a potential upside of 30.71%. Given Primero Mining Corp’s higher probable upside, equities research analysts plainly believe Primero Mining Corp is more favorable than Paramount Gold Nevada Corp.

Earnings & Valuation

This table compares Primero Mining Corp and Paramount Gold Nevada Corp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Primero Mining Corp	$177.87 million	0.17	$25.84 million	($2.39)	-0.07
Paramount Gold Nevada Corp	N/A	N/A	-$4.75 million	N/A	N/A

Primero Mining Corp has higher revenue and earnings than Paramount Gold Nevada Corp.

Summary

Primero Mining Corp beats Paramount Gold Nevada Corp on 7 of the 8 factors compared between the two stocks.

About Primero Mining Corp

Primero Mining Corp. is a precious metals producer with operations in both Mexico and Canada. The Company is focused on building a portfolio of precious metals assets in the Americas through acquiring, exploring, developing and operating mineral resource properties. Its segments include San Dimas, Cerro del Gallo, Black Fox Complex and Corporate. It owns over two producing properties, including the San Dimas gold-silver mine, located in Mexico’s San Dimas district, and the Black Fox mine, located in the Township of Black River-Matheson, Ontario, Canada. It owns properties adjacent to the Black Fox mine, Grey Fox and Pike River, which together with the Black Fox mine and the Black Fox mill, located on the Stock Mill property, comprise the Black Fox Complex. It also owns over two exploration properties, including the Cerro del Gallo gold-silver-copper project, which is located in the state of Guanajuato in central Mexico, and Ventanas, which is located in Durango State, Mexico.

About Paramount Gold Nevada Corp

Paramount Gold Nevada Corp. is an exploration-stage mining company. The Company is engaged in the business of acquiring, exploring and developing precious metal projects in the United States. Its principal Nevada interest, the Sleeper Gold Project, is located in Humboldt County, Nevada. Its project located in Oregon, known as the Grassy Mountain Project, is situated in Malheur County, Oregon. As of June 30, 2016, the Company owned additional mining claims in the State of Nevada, including the Mill Creek property, which had 36 unpatented lode mining claims in Lander County, and the Spring Valley property, which had 38 lode mining claims in Pershing County. Its subsidiaries, New Sleeper Gold LLC and Sleeper Mining Company, LLC, operate its mining interests in Nevada. Its subsidiaries, Calico Resources Corp. and Calico Resources USA Corp., hold its interest in the Grassy Mountain Project in Oregon. As of June 30, 2016, the Company had not generated any revenues from operations.