Critical Survey: NextSource Materials (OTCMKTS:NSRCF) vs. Osisko Development (NYSE:ODV)

NextSource Materials (OTCMKTS:NSRCF) and Osisko Development (NYSE:ODV) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Profitability

This table compares NextSource Materials and Osisko Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextSource Materials	N/A	-18.93%	-11.50%
Osisko Development	-1,817.64%	-11.51%	-8.41%

Analyst Recommendations

This is a summary of recent recommendations and price targets for NextSource Materials and Osisko Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextSource Materials	0	1	0	0	2.00
Osisko Development	0	0	0	0	0.00

Insider and Institutional Ownership

15.2% of Osisko Development shares are owned by institutional investors. 4.6% of NextSource Materials shares are owned by company insiders. Comparatively, 0.9% of Osisko Development shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

NextSource Materials has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares NextSource Materials and Osisko Development”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextSource Materials	N/A	N/A	-$9.00 million	($0.07)	-7.86
Osisko Development	$23.43 million	8.60	-$134.73 million	($1.81)	-0.81

NextSource Materials has higher earnings, but lower revenue than Osisko Development. NextSource Materials is trading at a lower price-to-earnings ratio than Osisko Development, indicating that it is currently the more affordable of the two stocks.

Summary

NextSource Materials beats Osisko Development on 6 of the 11 factors compared between the two stocks.

About NextSource Materials

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.

About Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.