Head to Head Contrast: Pure Energy Minerals (OTCMKTS:PEMIF) and Vale (NYSE:VALE)

Pure Energy Minerals (OTCMKTS:PEMIFGet Rating) and Vale (NYSE:VALEGet Rating) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Pure Energy Minerals and Vale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pure Energy Minerals -50.00% -0.74% -0.74%
Vale 38.99% 38.16% 16.63%

Analyst Ratings

This is a breakdown of current ratings and target prices for Pure Energy Minerals and Vale, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pure Energy Minerals 0 0 0 0 N/A
Vale 0 7 5 0 2.42

Vale has a consensus target price of $17.50, indicating a potential upside of 28.58%. Given Vale’s higher probable upside, analysts clearly believe Vale is more favorable than Pure Energy Minerals.

Institutional & Insider Ownership

20.6% of Vale shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Pure Energy Minerals and Vale’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pure Energy Minerals $400,000.00 57.79 $60,000.00 N/A N/A
Vale $43.84 billion 1.39 $18.79 billion $3.53 3.86

Vale has higher revenue and earnings than Pure Energy Minerals.

Volatility & Risk

Pure Energy Minerals has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Vale has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Summary

Vale beats Pure Energy Minerals on 8 of the 10 factors compared between the two stocks.

About Pure Energy Minerals

(Get Rating)

Pure Energy Minerals Ltd. is a mineral resource company, which engages in the exploration and development of mineral properties. It focuses on lithium brine projects that are located in Clayton Valley, Nevada and Salta Province, Argentina. The company was founded by Jeremy Poirier on June 7, 1999 and is headquartered in Vancouver, Canada.

About Vale

(Get Rating)

Vale SA engages in the production and exportation of iron ore, pellets, manganese, and iron alloys. It operates through the following segments: Ferrous Minerals, Base Metals, and Coal. The Ferrous Minerals segment includes the production and extraction of iron ore, iron ore pellets, manganese, other ferrous products, and logistic services. The Base Metals segment involves the production and extraction of nickel and its by-products. The Coal segment consists of the production and extraction of metallurgical and thermal coal and its logistic services. The company was founded on June 1, 1942 and is headquartered in Rio de Janeiro, Brazil.

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