Excellon Resources (OTCMKTS:EXNRF) & Nouveau Monde Graphite (NYSE:NMG) Critical Comparison

Nouveau Monde Graphite (NYSE:NMG) and Excellon Resources (OTCMKTS:EXNRF) 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 earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

41.1% of Nouveau Monde Graphite shares are held by institutional investors. 22.7% of Nouveau Monde Graphite shares are held by insiders. Comparatively, 3.2% of Excellon Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Nouveau Monde Graphite and Excellon Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nouveau Monde Graphite	N/A	N/A	-$53.48 million	($0.32)	-5.22
Excellon Resources	$25.82 million	1.36	-$5.22 million	($0.03)	-5.28

Excellon Resources has higher revenue and earnings than Nouveau Monde Graphite. Excellon Resources is trading at a lower price-to-earnings ratio than Nouveau Monde Graphite, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Nouveau Monde Graphite and Excellon Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nouveau Monde Graphite	0	0	2	0	3.00
Excellon Resources	0	0	0	0	0.00

Nouveau Monde Graphite currently has a consensus price target of $2.58, indicating a potential upside of 54.19%. Given Nouveau Monde Graphite’s stronger consensus rating and higher possible upside, equities analysts clearly believe Nouveau Monde Graphite is more favorable than Excellon Resources.

Volatility & Risk

Nouveau Monde Graphite has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Excellon Resources has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Profitability

This table compares Nouveau Monde Graphite and Excellon Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nouveau Monde Graphite	N/A	-40.65%	-30.19%
Excellon Resources	N/A	-40.21%	-20.16%

Summary

Nouveau Monde Graphite beats Excellon Resources on 7 of the 12 factors compared between the two stocks.

About Nouveau Monde Graphite

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores for graphite. The company’s flagship property is the 100% owned Matawinie graphite property including 176 mining claims covering an area of 9,264 hectares located in Quebec. It also involved in the real estate and trading activities. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-Des-Saints, Canada.

About Excellon Resources

Excellon Resources Inc. engages in the acquisition, exploration, and advancement of mineral properties. It primarily explores for silver, lead, zinc, and gold deposits, as well as base metals. The company holds 100% interests in the Platosa property covering an area of approximately 11,000 hectares located in Durango State, Mexico; the Evolución property that covers an area of 31,280 hectares situated in the states of Durango and Zacatecas, Mexico; and the Silver City project totaling an area of 340 square kilometers in Saxony, Germany. It also holds 100% interests in the Kilgore project comprising 789 unpatented federal lode claims that covers an area of 6,788 hectares located in Clark County, eastern Idaho; and the Oakley project covering an area of 2,833 hectares in Oakley, Idaho. In addition, the company has an option to acquire the La Negra project located in Querétaro State, Mexico. Excellon Resources Inc. was incorporated in 1987 and is based in Toronto, Canada.