Western Copper & Gold (NYSE:WRN) and North American Palladium (OTCMKTS:PALDF) Financial Contrast

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

Earnings and Valuation

This table compares North American Palladium and Western Copper & Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
North American Palladium	$306.17 million	2.88	$91.96 million	N/A	N/A
Western Copper & Gold	N/A	N/A	-$2.47 million	($0.02)	-53.75

North American Palladium has higher revenue and earnings than Western Copper & Gold.

Institutional and Insider Ownership

22.0% of Western Copper & Gold shares are owned by institutional investors. 1.0% of North American Palladium 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, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for North American Palladium and Western Copper & Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
North American Palladium	0	0	0	0	0.00
Western Copper & Gold	0	0	3	1	3.25

Western Copper & Gold has a consensus price target of $4.25, indicating a potential upside of 295.35%. Given Western Copper & Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Western Copper & Gold is more favorable than North American Palladium.

Profitability

This table compares North American Palladium and Western Copper & Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
North American Palladium	35.18%	24.49%	20.79%
Western Copper & Gold	N/A	-3.53%	-3.45%

Risk and Volatility

North American Palladium has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Western Copper & Gold has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Summary

North American Palladium beats Western Copper & Gold on 7 of the 13 factors compared between the two stocks.

About North American Palladium

North American Palladium Ltd. produces precious metals in Canada. It explores for palladium, platinum, gold, nickel, copper, and other metals. It primarily holds interest in the Lac des Iles mine that is located to the northwest of Thunder Bay, Ontario. The company was founded in 1968 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.