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 better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares SilverCrest Metals and First Majestic Silver”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SilverCrest Metals | $245.13 million | 6.37 | $116.72 million | $0.57 | 18.42 |
First Majestic Silver | $573.80 million | 3.30 | -$135.11 million | ($0.27) | -23.22 |
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
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% |
Risk and Volatility
SilverCrest Metals has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for SilverCrest Metals and First Majestic Silver, as reported 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 price target of $10.13, suggesting a potential downside of 3.57%. First Majestic Silver has a consensus price target of $7.50, suggesting a potential upside of 19.62%. Given First Majestic Silver’s stronger consensus rating and higher possible upside, analysts plainly believe First Majestic Silver is more favorable than SilverCrest Metals.
Institutional & Insider Ownership
44.8% of SilverCrest Metals shares are held by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are held by institutional investors. 4.1% of SilverCrest Metals shares are held by company insiders. Comparatively, 0.9% of First Majestic Silver shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
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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