Critical Review: Quaterra Resources (OTCMKTS:QTRRF) and Westwater Resources (NASDAQ:WWR)

Quaterra Resources (OTCMKTS:QTRRF) and Westwater Resources (NASDAQ:WWR) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Valuation & Earnings

This table compares Quaterra Resources and Westwater Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaterra Resources	N/A	N/A	-$980,000.00	N/A	N/A
Westwater Resources	N/A	N/A	-$7.75 million	($0.31)	-2.08

Profitability

This table compares Quaterra Resources and Westwater Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quaterra Resources	N/A	-6.27%	-6.15%
Westwater Resources	N/A	-5.89%	-5.50%

Volatility and Risk

Quaterra Resources has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Westwater Resources has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Quaterra Resources and Westwater Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaterra Resources	0	0	0	0	0.00
Westwater Resources	0	0	2	0	3.00

Westwater Resources has a consensus target price of $1.88, suggesting a potential upside of 190.65%. Given Westwater Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Westwater Resources is more favorable than Quaterra Resources.

Institutional & Insider Ownership

7.7% of Westwater Resources shares are owned by institutional investors. 4.9% of Westwater Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Westwater Resources beats Quaterra Resources on 8 of the 9 factors compared between the two stocks.

About Quaterra Resources

Quaterra Resources, Inc. engages in the acquisition, exploration, and development of mineral properties. It holds interest in the Groundhog and Quaterra’s Yerington Copper projects. The company was founded on May 11, 1993 and is headquartered in Vancouver, Canada.

About Westwater Resources

Westwater Resources, Inc. operates as an energy technology company, focuses on developing battery-grade natural graphite materials. The company holds interests in Kellyton Graphite Plant located in Kellyton, Alabama; and Bama Mine Project situated in south Alabama. It holds interests in Coosa graphite project located in Coosa County, Alabama. The company was formerly known as Uranium Resources, Inc. and changed its name to Westwater Resources, Inc. in August 2017. Westwater Resources, Inc. was incorporated in 1977 and is headquartered in Centennial, Colorado.