Analyzing SilverCrest Metals (NYSE:SILV) and Seabridge Gold (NYSE:SA)

SilverCrest Metals (NYSE:SILV) and Seabridge Gold (NYSE:SA) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Valuation & Earnings

This table compares SilverCrest Metals and Seabridge Gold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverCrest Metals	$278.08 million	4.90	$116.72 million	$0.57	16.09
Seabridge Gold	N/A	N/A	-$21.68 million	($0.25)	-47.40

SilverCrest Metals has higher revenue and earnings than Seabridge Gold. Seabridge Gold is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 34.8% of Seabridge Gold shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by insiders. Comparatively, 12.8% of Seabridge Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SilverCrest Metals and Seabridge Gold’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%
Seabridge Gold	N/A	-3.42%	-1.95%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for SilverCrest Metals and Seabridge Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	2	1	0	2.33
Seabridge Gold	0	0	0	0	0.00

SilverCrest Metals presently has a consensus target price of $10.13, indicating a potential upside of 10.41%. Given SilverCrest Metals’ stronger consensus rating and higher probable upside, research analysts plainly believe SilverCrest Metals is more favorable than Seabridge Gold.

Volatility and Risk

SilverCrest Metals has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Summary

SilverCrest Metals beats Seabridge Gold on 12 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 Seabridge Gold

Seabridge Gold Inc., together with its subsidiaries, engages in the acquisition and exploration of gold properties in North America. The company also explores for gold, copper, silver, and molybdenum deposits. The company was formerly known as Seabridge Resources Inc. and changed its name to Seabridge Gold Inc. in June 2002. Seabridge Gold Inc. was incorporated in 1979 and is based in Toronto, Canada.