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

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

Analyst Ratings

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

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

NioCorp Developments currently has a consensus target price of $3.63, indicating a potential upside of 123.77%. Given NioCorp Developments’ stronger consensus rating and higher probable upside, equities analysts plainly believe NioCorp Developments is more favorable than Cerro Grande Mining.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NioCorp Developments	N/A	N/A	-$11.44 million	($0.85)	-1.91
Cerro Grande Mining	N/A	N/A	-$390,000.00	N/A	N/A

Volatility & Risk

NioCorp Developments has a beta of -0.46, meaning that its share price is 146% less volatile than the S&P 500. Comparatively, Cerro Grande Mining has a beta of -0.73, meaning that its share price is 173% less volatile than the S&P 500.

Profitability

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

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

Insider and Institutional Ownership

4.0% of NioCorp Developments shares are held by institutional investors. 18.7% of NioCorp Developments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

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

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.

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.