Analyzing Gold Resource (NYSE:GORO) and SilverCrest Metals (NYSE:SILV)

SilverCrest Metals (NYSE:SILV) and Gold Resource (NYSE:GORO) 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 profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Volatility and Risk

SilverCrest Metals has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Valuation and Earnings

This table compares SilverCrest Metals and Gold Resource”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	5.44	$116.72 million	$0.57	17.82
Gold Resource	$73.90 million	0.35	-$16.02 million	($0.49)	-0.56

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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SilverCrest Metals and Gold Resource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	2	1	0	2.33
Gold Resource	0	0	1	0	3.00

SilverCrest Metals presently has a consensus target price of $10.13, indicating a potential downside of 0.34%. Gold Resource has a consensus target price of $1.75, indicating a potential upside of 543.38%. Given Gold Resource’s stronger consensus rating and higher possible upside, analysts clearly believe Gold Resource is more favorable than SilverCrest Metals.

Insider & Institutional Ownership

44.8% of SilverCrest Metals shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 4.1% of SilverCrest Metals shares are held by insiders. Comparatively, 2.5% of Gold Resource shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares SilverCrest Metals and Gold Resource’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%
Gold Resource	-61.31%	-35.25%	-16.15%

Summary

SilverCrest Metals beats Gold Resource on 10 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 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.