Contrasting SilverCrest Metals (NYSE:SILV) & First Majestic Silver (NYSE:AG)

First Majestic Silver (NYSE:AG) and SilverCrest Metals (NYSE:SILV) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for First Majestic Silver and SilverCrest Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Majestic Silver	0	1	1	0	2.50
SilverCrest Metals	0	2	1	0	2.33

First Majestic Silver presently has a consensus price target of $7.50, indicating a potential upside of 23.15%. SilverCrest Metals has a consensus price target of $10.13, indicating a potential downside of 2.78%. Given First Majestic Silver’s stronger consensus rating and higher possible upside, analysts clearly believe First Majestic Silver is more favorable than SilverCrest Metals.

Valuation and Earnings

This table compares First Majestic Silver and SilverCrest Metals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Majestic Silver	$573.80 million	3.20	-$135.11 million	($0.27)	-22.55
SilverCrest Metals	$278.08 million	5.57	$116.72 million	$0.57	18.27

SilverCrest Metals has lower revenue, but higher earnings 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 First Majestic Silver and SilverCrest Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Majestic Silver	-14.89%	-4.19%	-2.89%
SilverCrest Metals	30.85%	23.35%	20.98%

Risk and Volatility

First Majestic Silver has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, SilverCrest Metals has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Institutional and Insider Ownership

27.2% of First Majestic Silver shares are held by institutional investors. Comparatively, 44.8% of SilverCrest Metals shares are held by institutional investors. 0.9% of First Majestic Silver shares are held by company insiders. Comparatively, 4.1% of SilverCrest Metals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock 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 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.

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.