First Majestic Silver Corp. (NYSE: AG) and Silvercorp Metals (OTCMKTS:SVMLF) 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, analyst recommendations, earnings, dividends and profitabiliy.
Silvercorp Metals pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. First Majestic Silver Corp. does not pay a dividend. Silvercorp Metals pays out 5.9% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares First Majestic Silver Corp. and Silvercorp Metals’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First Majestic Silver Corp.||$280.67 million||4.51||$105.85 million||$0.12||63.92|
|Silvercorp Metals||$148.83 million||3.69||$73.14 million||$0.17||19.33|
First Majestic Silver Corp. has higher revenue and earnings than Silvercorp Metals. Silvercorp Metals 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.
This table compares First Majestic Silver Corp. and Silvercorp Metals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Majestic Silver Corp.||6.67%||3.20%||2.32%|
Institutional and Insider Ownership
27.9% of First Majestic Silver Corp. shares are owned by institutional investors. Comparatively, 0.0% of Silvercorp Metals shares are owned by institutional investors. 0.9% of First Majestic Silver Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
First Majestic Silver Corp. has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Silvercorp Metals has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for First Majestic Silver Corp. and Silvercorp Metals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Majestic Silver Corp.||0||6||1||0||2.14|
First Majestic Silver Corp. presently has a consensus target price of $14.25, indicating a potential upside of 85.79%. Given First Majestic Silver Corp.’s higher possible upside, equities research analysts plainly believe First Majestic Silver Corp. is more favorable than Silvercorp Metals.
First Majestic Silver Corp. beats Silvercorp Metals on 9 of the 15 factors compared between the two stocks.
About First Majestic Silver Corp.
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.
About Silvercorp Metals
Silvercorp Metals Inc. (Silvercorp) is a silver-producing Canadian mining company. The Company is engaged in the acquisition, exploration, development, and mining of silver-related mineral properties in China. The Company’s segments include Mining, including projects, such as Henan Luoning, Hunan, Guangdong and Other, and Administrative, which includes Beijing and Vancouver. The Company is the primary silver producer in China through the operation of over four silver-lead-zinc mines in the Ying Mining District in Henan Province, China, including SGX, HZG, TLP, Haopinggou (HPG) and the LM mines. The Company also has commercial production at its Gaocheng (GC) silver-lead-zinc project in Guangdong Province. Silvercorp’s principal products and source of sales are silver-bearing lead and zinc concentrates and some direct smelting ores. The Company sells all its products to local smelters or companies in the mineral products trading business.
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