Gold Resource (NYSE:GORO – Get Free Report) and SilverCrest Metals (NYSE:SILV – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Profitability
This table compares Gold Resource and SilverCrest Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gold Resource | -61.31% | -35.25% | -16.15% |
| SilverCrest Metals | 30.85% | 23.35% | 20.98% |
Volatility and Risk
Gold Resource has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, SilverCrest Metals has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gold Resource | 0 | 0 | 1 | 0 | 3.00 |
| SilverCrest Metals | 0 | 2 | 1 | 0 | 2.33 |
Gold Resource presently has a consensus target price of $1.75, indicating a potential upside of 543.38%. SilverCrest Metals has a consensus target price of $10.13, indicating a potential downside of 0.34%. Given Gold Resource’s stronger consensus rating and higher possible upside, research analysts plainly believe Gold Resource is more favorable than SilverCrest Metals.
Insider & Institutional Ownership
18.4% of Gold Resource shares are held by institutional investors. Comparatively, 44.8% of SilverCrest Metals shares are held by institutional investors. 2.5% of Gold Resource 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Gold Resource and SilverCrest Metals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gold Resource | $73.90 million | 0.35 | -$16.02 million | ($0.49) | -0.56 |
| SilverCrest Metals | $278.08 million | 5.44 | $116.72 million | $0.57 | 17.82 |
SilverCrest Metals has higher revenue and earnings than Gold Resource. Gold Resource is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.
Summary
SilverCrest Metals beats Gold Resource on 10 of the 13 factors compared between the two stocks.
About Gold Resource
Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.
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.
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