Financial Review: Western Copper & Gold (NYSE:WRN) versus North American Palladium (OTCMKTS:PALDF)

Western Copper & Gold (NYSE:WRNGet Free Report) and North American Palladium (OTCMKTS:PALDFGet Free Report) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

22.0% of Western Copper & Gold shares are held by institutional investors. 4.6% of Western Copper & Gold shares are held by insiders. Comparatively, 1.0% of North American Palladium shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Western Copper & Gold and North American Palladium”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Copper & Gold N/A N/A -$2.47 million ($0.02) -56.50
North American Palladium $306.17 million 2.88 $91.96 million N/A N/A

North American Palladium has higher revenue and earnings than Western Copper & Gold.

Analyst Ratings

This is a breakdown of recent ratings for Western Copper & Gold and North American Palladium, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Copper & Gold 0 0 3 1 3.25
North American Palladium 0 0 0 0 0.00

Western Copper & Gold currently has a consensus target price of $4.25, indicating a potential upside of 276.11%. Given Western Copper & Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Western Copper & Gold is more favorable than North American Palladium.

Profitability

This table compares Western Copper & Gold and North American Palladium’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Copper & Gold N/A -3.53% -3.45%
North American Palladium 35.18% 24.49% 20.79%

Risk and Volatility

Western Copper & Gold has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, North American Palladium has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.

Summary

North American Palladium beats Western Copper & Gold on 7 of the 13 factors compared between the two stocks.

About Western Copper & Gold

(Get Free Report)

Western Copper & Gold Corp. operates as an exploration stage company, which engages in the acquisition, exploration, and future development of mineral resource properties. It currently focuses on the development of the Casino Project. The company was founded on March 17, 2006 and is headquartered in Vancouver, Canada.

About North American Palladium

(Get Free Report)

North American Palladium Ltd. produces precious metals in Canada. It explores for palladium, platinum, gold, nickel, copper, and other metals. It primarily holds interest in the Lac des Iles mine that is located to the northwest of Thunder Bay, Ontario. The company was founded in 1968 and is headquartered in Toronto, Canada.

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