Nouveau Monde Graphite (NYSE:NMG) and IBC Advanced Alloys (OTCMKTS:IAALF) Financial Comparison

Nouveau Monde Graphite (NYSE:NMG) and IBC Advanced Alloys (OTCMKTS:IAALF) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Volatility and Risk

Nouveau Monde Graphite has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, IBC Advanced Alloys has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Profitability

This table compares Nouveau Monde Graphite and IBC Advanced Alloys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nouveau Monde Graphite	N/A	-47.42%	-35.20%
IBC Advanced Alloys	-13.85%	-62.82%	-10.43%

Analyst Ratings

This is a breakdown of recent ratings for Nouveau Monde Graphite and IBC Advanced Alloys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nouveau Monde Graphite	1	1	2	0	2.25
IBC Advanced Alloys	0	0	0	0	0.00

Nouveau Monde Graphite presently has a consensus target price of $4.95, indicating a potential upside of 26.70%. Given Nouveau Monde Graphite’s stronger consensus rating and higher probable upside, research analysts clearly believe Nouveau Monde Graphite is more favorable than IBC Advanced Alloys.

Valuation and Earnings

This table compares Nouveau Monde Graphite and IBC Advanced Alloys”s gross 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	($0.35)	-11.16
IBC Advanced Alloys	$25.66 million	0.54	$1.70 million	($0.02)	-6.00

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

Institutional & 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. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Nouveau Monde Graphite beats IBC Advanced Alloys on 7 of the 13 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 IBC Advanced Alloys

IBC Advanced Alloys Corp. develops, produces, and sells specialty alloy products in the United States and internationally. The company operates through Copper Alloys and Engineered Materials segments. It offers various copper alloys as castings and forgings, such as beryllium copper, chrome copper, oxygen-free high conductivity copper, and aluminum bronze in the form of plates, blocks, rounds, discs, bars, rings, tubes, rods, and other custom forgings, as well as specialty copper alloy forgings for plastic mold tooling and resistance welding applications. The company also provides beryllium-aluminum castings, beryllium-aluminum alloys, beryllium-copper alloys, high-strength beryllium-copper casting alloys, high-conductivity beryllium-copper casting alloys, and beryllium-nickel casting alloys. In addition, it manufactures Thermal-Mold Super, a beryllium-free mold alloy of copper-nickel-silicon-chrome, as well as provides tolling services and consulting. It serves automotive, defense, resistance welding, electronics, industrial equipment, injection molding, foundry, aerospace, and oil and gas industries. The company was formerly known as International Beryllium Corporation and changed its name to IBC Advanced Alloys Corp. in March 2009. IBC Advanced Alloys Corp. is headquartered in Franklin, Indiana.