Comparing Ivanhoe Mines (OTCMKTS:IVPAF) & Tredegar (NYSE:TG)

Tredegar (NYSE:TG) and Ivanhoe Mines (OTCMKTS:IVPAF) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares Tredegar and Ivanhoe Mines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tredegar	2.95%	9.40%	5.29%
Ivanhoe Mines	21.53%	5.35%	4.01%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Tredegar and Ivanhoe Mines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tredegar	0	1	0	0	2.00
Ivanhoe Mines	0	6	2	1	2.44

Ivanhoe Mines has a consensus target price of $15.20, suggesting a potential upside of 169.03%. Given Ivanhoe Mines’ stronger consensus rating and higher possible upside, analysts plainly believe Ivanhoe Mines is more favorable than Tredegar.

Insider & Institutional Ownership

79.2% of Tredegar shares are owned by institutional investors. 2.5% of Tredegar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Tredegar has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Ivanhoe Mines has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Tredegar and Ivanhoe Mines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tredegar	$793.97 million	0.25	$33.48 million	$0.68	8.49
Ivanhoe Mines	$441.61 million	18.25	$261.55 million	$0.11	51.36

Ivanhoe Mines has lower revenue, but higher earnings than Tredegar. Tredegar is trading at a lower price-to-earnings ratio than Ivanhoe Mines, indicating that it is currently the more affordable of the two stocks.

Summary

Ivanhoe Mines beats Tredegar on 9 of the 15 factors compared between the two stocks.

About Tredegar

Tredegar Corporation is a manufacturer of specialty films and aluminum extrusions. The company develops and produces polyethylene and other plastic films used in personal care, hygiene, medical, food packaging, household and industrial applications. Its flexible packaging products are designed to provide barrier, sealing and performance characteristics for packaged goods. Through its aluminum operations, including Bonnell Aluminum, Tredegar produces extruded and fabricated aluminum components for building and construction, transportation, automotive, consumer durables and other industrial markets.

About Ivanhoe Mines

Ivanhoe Mines is a Canadian mining company focused on discovering, developing and operating mineral projects in Africa. Its main commodities include copper, zinc and platinum-group metals. The company’s projects include the Kamoa-Kakula copper complex and the Kipushi zinc-copper mine in the Democratic Republic of the Congo, as well as the Platreef platinum-group metals, nickel, copper and gold project in South Africa. Founded by mining entrepreneur Robert Friedland, Ivanhoe Mines was previously known as Ivanhoe Mines Ltd. and has developed its portfolio through exploration and partnerships.