Financial Contrast: Tanzanian Gold (NYSE:TRX) vs. Pan American Silver (NASDAQ:PAAS)

Tanzanian Gold (NYSE:TRXGet Rating) and Pan American Silver (NASDAQ:PAASGet Rating) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Tanzanian Gold and Pan American Silver, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tanzanian Gold 0 0 1 0 3.00
Pan American Silver 0 0 6 0 3.00

Tanzanian Gold currently has a consensus price target of $0.70, suggesting a potential upside of 93.53%. Pan American Silver has a consensus price target of $35.67, suggesting a potential upside of 78.42%. Given Tanzanian Gold’s higher probable upside, analysts plainly believe Tanzanian Gold is more favorable than Pan American Silver.

Institutional & Insider Ownership

1.0% of Tanzanian Gold shares are held by institutional investors. Comparatively, 44.3% of Pan American Silver shares are held by institutional investors. 12.9% of Pan American Silver shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Tanzanian Gold and Pan American Silver’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tanzanian Gold N/A N/A -$4.00 million ($0.03) -12.06
Pan American Silver $1.63 billion 2.56 $97.43 million $0.86 23.09

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

Profitability

This table compares Tanzanian Gold and Pan American Silver’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tanzanian Gold N/A -16.24% -13.30%
Pan American Silver 10.70% 5.90% 4.47%

Risk and Volatility

Tanzanian Gold has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Summary

Pan American Silver beats Tanzanian Gold on 11 of the 12 factors compared between the two stocks.

About Tanzanian Gold (Get Rating)

Tanzanian Gold Corporation engages in the acquisition, financing, exploration and development of mineral property interests in the United Republic of Tanzania. The company primarily explores for gold deposits. It holds interests in the Buckreef gold project located in north-central Tanzania. The company was formerly known as Tanzanian Royalty Exploration Corporation and changed its name to Tanzanian Gold Corporation in April 2019. Tanzanian Gold Corporation was incorporated in 1990 and is based in Toronto, Canada.

About Pan American Silver (Get Rating)

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

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