Head-To-Head Analysis: RCF Acquisition (NYSE:RCFA) versus Gatos Silver (NYSE:GATO)

Gatos Silver (NYSE:GATO) and RCF Acquisition (NYSE:RCFA) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gatos Silver and RCF Acquisition, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gatos Silver	0	2	2	1	2.80
RCF Acquisition	0	0	0	0	N/A

Gatos Silver presently has a consensus price target of $11.80, suggesting a potential downside of 3.12%. Given Gatos Silver’s higher probable upside, research analysts clearly believe Gatos Silver is more favorable than RCF Acquisition.

Risk & Volatility

Gatos Silver has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, RCF Acquisition has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500.

Profitability

This table compares Gatos Silver and RCF Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gatos Silver	N/A	7.41%	7.03%
RCF Acquisition	N/A	-37.34%	4.24%

Valuation & Earnings

This table compares Gatos Silver and RCF Acquisition’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gatos Silver	N/A	N/A	$12.86 million	$0.22	55.36
RCF Acquisition	N/A	N/A	$4.74 million	N/A	N/A

Insider & Institutional Ownership

44.8% of Gatos Silver shares are owned by institutional investors. Comparatively, 24.6% of RCF Acquisition shares are owned by institutional investors. 3.8% of Gatos Silver shares are owned by company insiders. Comparatively, 19.9% of RCF Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Gatos Silver beats RCF Acquisition on 8 of the 9 factors compared between the two stocks.

About Gatos Silver

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

About RCF Acquisition

RCF Acquisition Corp. does not have significant operations. It focuses to target assets or businesses of scale across the critical minerals value chain that are poised to benefit over the long-term from the substantial market opportunity created by the global energy transition. The company was incorporated in 2021 and is based in Denver, Colorado.