Critical Review: Skeena Resources (NYSE:SKE) & SilverCrest Metals (NYSE:SILV)

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

Valuation and Earnings

This table compares SilverCrest Metals and Skeena Resources”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	7.03	$116.72 million	$0.57	20.26
Skeena Resources	N/A	N/A	-$80.73 million	($1.13)	-7.92

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

Insider & Institutional Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 45.2% of Skeena Resources shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by insiders. Comparatively, 2.0% of Skeena Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

SilverCrest Metals has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares SilverCrest Metals and Skeena Resources’ 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%
Skeena Resources	N/A	-115.76%	-67.22%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SilverCrest Metals and Skeena Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	2	1	0	2.33
Skeena Resources	0	0	0	0	0.00

SilverCrest Metals currently has a consensus target price of $10.13, indicating a potential downside of 12.34%. Given SilverCrest Metals’ stronger consensus rating and higher probable upside, analysts plainly believe SilverCrest Metals is more favorable than Skeena Resources.

Summary

SilverCrest Metals beats Skeena Resources on 11 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 Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.