Thunder Mountain Gold (OTCMKTS:THMG) versus Mountain Province Diamonds (OTCMKTS:MPVDF) Critical Analysis

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Thunder Mountain Gold and Mountain Province Diamonds, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thunder Mountain Gold	0	0	0	0	N/A
Mountain Province Diamonds	0	0	0	0	N/A

Institutional & Insider Ownership

0.0% of Thunder Mountain Gold shares are owned by institutional investors. Comparatively, 0.5% of Mountain Province Diamonds shares are owned by institutional investors. 29.5% of Thunder Mountain Gold shares are owned by insiders. Comparatively, 4.8% of Mountain Province Diamonds shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Thunder Mountain Gold and Mountain Province Diamonds’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thunder Mountain Gold	$300,000.00	9.33	-$820,000.00	($0.01)	-4.60
Mountain Province Diamonds	$243.43 million	0.12	-$32.35 million	($0.18)	-0.77

Thunder Mountain Gold has higher earnings, but lower revenue than Mountain Province Diamonds. Thunder Mountain 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

Thunder Mountain Gold has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Profitability

This table compares Thunder Mountain Gold and Mountain Province Diamonds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thunder Mountain Gold	N/A	-279.78%	-63.02%
Mountain Province Diamonds	-14.29%	6.64%	3.10%

Summary

Mountain Province Diamonds beats Thunder Mountain Gold on 6 of the 11 factors compared between the two stocks.

About Thunder Mountain Gold

Thunder Mountain Gold, Inc., a mineral exploration stage company, explores for mining properties in Nevada and Idaho. It explores for gold, silver, base metals, and other commodities. The company holds interests in the South Mountain property that includes 17 patented mining claims covering an area of approximately 326 acres; 21 unpatented mining lode claims covering an area of approximately 290 acres; leased private land covering an area of approximately 489 acres; and private land not contiguous with the mining claims covering an area of 360 acres located in Owyhee County, Idaho. It also holds interests in the Trout Creek project, which comprises 26 unpatented mining claims covering an area of approximately 520 acres situated in Lander County, Nevada. The company was incorporated in 1935 and is based in Boise, Idaho.

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.