SilverCrest Metals (NYSE:SILV – Get Free Report) and First Majestic Silver (NYSE:AG – Get Free Report) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Analyst Ratings
This is a summary of current recommendations for SilverCrest Metals and First Majestic Silver, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SilverCrest Metals | 0 | 2 | 1 | 0 | 2.33 |
First Majestic Silver | 0 | 1 | 1 | 0 | 2.50 |
SilverCrest Metals currently has a consensus target price of $10.13, indicating a potential downside of 0.44%. First Majestic Silver has a consensus target price of $7.50, indicating a potential upside of 22.75%. Given First Majestic Silver’s stronger consensus rating and higher possible upside, analysts plainly believe First Majestic Silver is more favorable than SilverCrest Metals.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SilverCrest Metals | $245.13 million | 6.17 | $116.72 million | $0.57 | 17.84 |
First Majestic Silver | $527.97 million | 3.49 | -$135.11 million | ($0.27) | -22.63 |
SilverCrest Metals has higher earnings, but lower revenue than First Majestic Silver. First Majestic Silver is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SilverCrest Metals and First Majestic Silver’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SilverCrest Metals | 30.85% | 23.35% | 20.98% |
First Majestic Silver | -14.89% | -4.19% | -2.89% |
Volatility and Risk
SilverCrest Metals has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Institutional & Insider Ownership
44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by company insiders. Comparatively, 0.9% of First Majestic Silver shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
SilverCrest Metals beats First Majestic Silver on 9 of the 13 factors compared between the two stocks.
About SilverCrest Metals
SilverCrest Metals Inc. engages in the acquiring, exploration, and development of precious metal properties in Mexico. The company primarily explores for silver and gold properties. Its focuses on principal property the Las Chispas Mine that consists of 28 concessions totaling of approximately 1,401 hectares located in Sonora, Mexico, as well as operates a portfolio of El Picacho, Cruz de Mayo, and Angel de Plata properties in Sonora Mexico. The company was incorporated in 2015 and is headquartered in Vancouver, Canada.
About First Majestic Silver
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.
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