Critical Review: North American Palladium (OTCMKTS:PALDF) and Centamin (OTCMKTS:CELTF)

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North American Palladium (OTCMKTS:PALDF) and Centamin (OTCMKTS:CELTF) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Valuation and Earnings

This table compares North American Palladium and Centamin’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
North American Palladium $306.17 million 2.02 $91.96 million N/A N/A
Centamin $603.25 million 2.62 $74.85 million $0.06 22.83

North American Palladium has higher earnings, but lower revenue than Centamin.

Volatility and Risk

North American Palladium has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Centamin has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Centamin shares are held by institutional investors. 1.0% of North American Palladium shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares North American Palladium and Centamin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
North American Palladium 33.05% 20.31% 16.36%
Centamin 13.57% 6.16% 5.91%

Dividends

North American Palladium pays an annual dividend of $0.30 per share and has a dividend yield of 2.9%. Centamin does not pay a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for North American Palladium and Centamin, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
North American Palladium 0 0 1 0 3.00
Centamin 0 1 0 0 2.00

Centamin has a consensus price target of $106.00, suggesting a potential upside of 7,637.23%. Given Centamin’s higher possible upside, analysts plainly believe Centamin is more favorable than North American Palladium.

Summary

North American Palladium beats Centamin on 9 of the 14 factors compared between the two stocks.

North American Palladium Company Profile

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.

Centamin Company Profile

Centamin Plc engages in the exploration, development and mining of precious metals. It operates through the following business segments: Egypt, Burkina Faso, Cote d’Ivoire, and Corporate. The company was founded on March 24, 1970 and is headquartered in Saint Helier, the United Kingdom.

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