Reviewing NioCorp Developments (NASDAQ:NB) & Exxaro Resources (OTCMKTS:EXXAY)

NioCorp Developments (NASDAQ:NB) and Exxaro Resources (OTCMKTS:EXXAY) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Insider & Institutional Ownership

4.0% of NioCorp Developments shares are held by institutional investors. 18.7% of NioCorp Developments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares NioCorp Developments and Exxaro Resources’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NioCorp Developments	N/A	N/A	-$40.08 million	($0.37)	-4.68
Exxaro Resources	$1.78 billion	1.63	$679.76 million	N/A	N/A

Exxaro Resources has higher revenue and earnings than NioCorp Developments.

Volatility and Risk

NioCorp Developments has a beta of -0.36, suggesting that its stock price is 136% less volatile than the S&P 500. Comparatively, Exxaro Resources has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares NioCorp Developments and Exxaro Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NioCorp Developments	N/A	N/A	-103.75%
Exxaro Resources	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for NioCorp Developments and Exxaro Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NioCorp Developments	0	0	1	0	3.00
Exxaro Resources	0	0	0	0	N/A

NioCorp Developments presently has a consensus target price of $8.50, suggesting a potential upside of 391.33%. Given NioCorp Developments’ higher probable upside, equities research analysts plainly believe NioCorp Developments is more favorable than Exxaro Resources.

About NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.

About Exxaro Resources

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia. The company operates through Coal; Ferrous; Energy; and Other segments. It produces thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; offers gas-atomised ferrosilicon for use in separation plants, as well as iron ore; and operates two wind farms. The company was formerly known as Kumba Iron Ore Limited and changed its name to Exxaro Resources Limited in November 2006. The company is based in Pretoria, South Africa.