First Majestic Silver Corp. (NYSE: AG) and Silver Standard Resources (NASDAQ:SSRM) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.
This table compares First Majestic Silver Corp. and Silver Standard Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Majestic Silver Corp.||5.11%||1.60%||1.18%|
|Silver Standard Resources||20.37%||10.69%||6.84%|
Valuation and Earnings
This table compares First Majestic Silver Corp. and Silver Standard Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First Majestic Silver Corp.||$274.72 million||3.87||$95.14 million||$0.09||71.44|
|Silver Standard Resources||N/A||N/A||N/A||$0.86||11.50|
First Majestic Silver Corp. has higher revenue and earnings than Silver Standard Resources. Silver Standard Resources is trading at a lower price-to-earnings ratio than First Majestic Silver Corp., indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
26.8% of First Majestic Silver Corp. shares are held by institutional investors. Comparatively, 47.0% of Silver Standard Resources shares are held by institutional investors. 0.9% of First Majestic Silver Corp. shares are held by 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.
This is a breakdown of current ratings and target prices for First Majestic Silver Corp. and Silver Standard Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Majestic Silver Corp.||0||5||2||0||2.29|
|Silver Standard Resources||0||3||3||0||2.50|
First Majestic Silver Corp. presently has a consensus target price of $12.67, indicating a potential upside of 96.99%. Silver Standard Resources has a consensus target price of $14.00, indicating a potential upside of 41.56%. Given First Majestic Silver Corp.’s higher possible upside, research analysts clearly believe First Majestic Silver Corp. is more favorable than Silver Standard Resources.
Volatility & Risk
First Majestic Silver Corp. has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Silver Standard Resources has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500.
Silver Standard Resources beats First Majestic Silver Corp. on 7 of the 12 factors compared between the two stocks.
First Majestic Silver Corp. Company Profile
First Majestic Silver Corp. is a mining company. The Company is focused on silver production in Mexico and it is pursuing the development of its existing mineral property assets. The Company operates through eight segments, six of which are located in Mexico; one retail market segment in Canada, and one metal trading segment in Europe. Its segments in Mexico are Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra. Its segment in Canada is Coins and Bullion Sales, and the segment in Europe is Silver Sales. The Company owns and operates approximately six producing silver mines: the La Encantada Silver Mine, La Parrilla Silver Mine, Del Toro Silver Mine, San Martin Silver Mine, La Guitarra Silver Mine and Santa Elena Silver Mine. The Company’s subsidiaries include First Majestic Plata, S.A. de C.V., Minera El Pilon, S.A. de C.V., Minera La Encantada, S.A. de C.V., Majestic Services, S.A. de C.V., Santa Elena Oro y Plata, S.A. de C.V. and FMS Trading AG.
Silver Standard Resources Company Profile
SSR Mining Inc, formerly Silver Standard Resources Inc, is a Canada-based resource company. The Company is engaged in the operation, acquisition, exploration and development of precious metal resource properties located in the Americas. The Company’s segments include Pirquitas mine, Marigold mine, Seabee Gold Operation, and Exploration and evaluation properties. The Company has three producing mines and a portfolio of silver resource dominant projects located throughout the Americas. The Company is focused on silver production from the Pirquitas mine in Argentina and gold production from the Marigold mine in Nevada, the United States. The Company’s other projects include Seabee Gold Operation in Saskatchewan, Canada and Pirquitas mine in Jujuy, Argentina. The Marigold mine produced approximately 205,116 ounces of gold. The Seabee Gold Operation produced approximately 77,640 ounces of gold. The Pirquitas mine produced approximately 10.4 million ounces of silver.
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