Critical Contrast: Western Copper & Gold (NYSE:WRN) versus Mountain Province Diamonds (OTCMKTS:MPVDF)

Mountain Province Diamonds (OTCMKTS:MPVDF) and Western Copper & Gold (NYSE:WRN) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Earnings and Valuation

This table compares Mountain Province Diamonds and Western Copper & Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mountain Province Diamonds	$243.43 million	0.09	-$32.35 million	($0.26)	-0.42
Western Copper & Gold	N/A	N/A	-$2.47 million	($0.03)	-39.33

Western Copper & Gold has lower revenue, but higher earnings than Mountain Province Diamonds. Western Copper & Gold is trading at a lower price-to-earnings ratio than Mountain Province Diamonds, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Mountain Province Diamonds has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500. Comparatively, Western Copper & Gold has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.

Institutional & Insider Ownership

0.4% of Mountain Province Diamonds shares are owned by institutional investors. Comparatively, 22.0% of Western Copper & Gold shares are owned by institutional investors. 4.8% of Mountain Province Diamonds shares are owned by insiders. Comparatively, 4.6% of Western Copper & Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Mountain Province Diamonds and Western Copper & Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mountain Province Diamonds	-29.66%	-4.09%	-1.76%
Western Copper & Gold	N/A	-3.95%	-3.83%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mountain Province Diamonds and Western Copper & Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mountain Province Diamonds	0	0	0	0	N/A
Western Copper & Gold	0	0	1	1	3.50

Western Copper & Gold has a consensus price target of $4.25, indicating a potential upside of 260.17%. Given Western Copper & Gold’s higher possible upside, analysts plainly believe Western Copper & Gold is more favorable than Mountain Province Diamonds.

Summary

Western Copper & Gold beats Mountain Province Diamonds on 8 of the 13 factors compared between the two stocks.

About Mountain Province Diamonds

Mountain Province Diamonds Inc. focuses on the mining and marketing of rough diamonds worldwide. The company holds a 49% interest in the Gahcho Kué mine comprising mining leases covering an area of 5,216 hectares; and 100% of the mineral rights of the Kennady North consisting of 22 federal leases and 97 claims covering an area of 113,000 hectares located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.

About Western Copper & Gold

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. The company explores for gold, copper, silver, and molybdenum deposits. Its principal property is the Casino mineral property that comprise 1,136 full and partial quartz claims, and 55 placer claims located in Yukon, Canada. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada.