Analyzing Cerro Grande Mining (OTCMKTS:CEGMF) and NioCorp Developments (NASDAQ:NB)

Cerro Grande Mining (OTCMKTS:CEGMF) and NioCorp Developments (NASDAQ:NB) 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 profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Volatility and Risk

Cerro Grande Mining has a beta of -0.86, indicating that its share price is 186% less volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.46, indicating that its share price is 146% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Cerro Grande Mining and NioCorp Developments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cerro Grande Mining	0	0	0	0	0.00
NioCorp Developments	0	0	2	0	3.00

NioCorp Developments has a consensus price target of $3.63, suggesting a potential upside of 121.04%. Given NioCorp Developments’ stronger consensus rating and higher probable upside, analysts clearly believe NioCorp Developments is more favorable than Cerro Grande Mining.

Earnings & Valuation

This table compares Cerro Grande Mining and NioCorp Developments”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cerro Grande Mining	N/A	N/A	-$390,000.00	N/A	N/A
NioCorp Developments	N/A	N/A	-$11.44 million	($0.85)	-1.93

Profitability

This table compares Cerro Grande Mining and NioCorp Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cerro Grande Mining	N/A	N/A	-18.16%
NioCorp Developments	N/A	-8,973.12%	-206.20%

Institutional & Insider Ownership

4.0% of NioCorp Developments shares are owned by institutional investors. 18.7% of NioCorp Developments shares are owned by insiders. 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.

Summary

NioCorp Developments beats Cerro Grande Mining on 6 of the 9 factors compared between the two stocks.

About Cerro Grande Mining

Cerro Grande Mining Corporation engages in the acquisition, exploration, evaluation, and development of mineral properties in Chile. The company explores for gold, silver, copper, and industrial mineral deposits. It holds interests in Tordillo project, which covers an area of 6,632 hectares located to the southwest of Pimenton; Pimenton mine; and limestone deposits, including Catedral and Cal Norte. The company was formerly known as South American Gold and Copper Company Limited and changed its name to Cerro Grande Mining Corporation in March 2011. Cerro Grande Mining Corporation was founded in 1990 and is based in Toronto, Canada.

About NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.