NioCorp Developments (NASDAQ:NB) vs. Cerro Grande Mining (OTCMKTS:CEGMF) Financial Analysis

NioCorp Developments (NASDAQ:NB) and Cerro Grande Mining (OTCMKTS:CEGMF) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

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

	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 presently has a consensus price target of $3.63, suggesting a potential upside of 126.56%. Given NioCorp Developments’ stronger consensus rating and higher probable upside, research analysts plainly believe NioCorp Developments is more favorable than Cerro Grande Mining.

Insider & Institutional 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & 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)	-1.88
Cerro Grande Mining	N/A	N/A	-$390,000.00	N/A	N/A

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%

Volatility & Risk

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

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.