Analyzing SilverCrest Metals (NYSE:SILV) and Loncor Gold (OTCMKTS:LONCF)

SilverCrest Metals (NYSE:SILV) and Loncor Gold (OTCMKTS:LONCF) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Earnings and Valuation

This table compares SilverCrest Metals and Loncor Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverCrest Metals	$261.54 million	6.32	$116.72 million	$0.83	13.41
Loncor Gold	N/A	N/A	-$21.27 million	($0.14)	-2.14

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

Volatility and Risk

SilverCrest Metals has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Loncor Gold has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for SilverCrest Metals and Loncor Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	2	1	0	2.33
Loncor Gold	0	0	0	0	N/A

SilverCrest Metals currently has a consensus price target of $10.13, indicating a potential downside of 9.03%. Given SilverCrest Metals’ higher possible upside, research analysts plainly believe SilverCrest Metals is more favorable than Loncor Gold.

Profitability

This table compares SilverCrest Metals and Loncor Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SilverCrest Metals	40.61%	25.66%	23.23%
Loncor Gold	N/A	-9.47%	-8.47%

Insider and Institutional Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by insiders. Comparatively, 22.1% of Loncor Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

SilverCrest Metals beats Loncor Gold on 11 of the 12 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 Loncor Gold

Loncor Gold Inc., a gold exploration company, engages in the acquisition, exploration, and development of precious metal projects in the Ngayu greenstone belt in the northeast of the Democratic Republic of the Congo and Canada. It explores for gold and platinum deposits. The company holds 84.68% interest in the Adumbi project, which consist of two mining licenses covering an area of 361 square kilometers located within the Archaean Ngayu Greenstone Belt in the Ituri and Haut Uele provinces in northeastern Congo. It also holds 100% interest in the Isiro properties that consist of 11 exploration permits covering an area of 1,884 square kilometers situated in the province of Haut Uele, northeastern Congo. In addition, Loncor Gold Inc. owns interest in North Kivu, Ngayu, Devon, Navarro, and Yindi projects. The company was formerly known as Loncor Resources Inc. and changed its name to Loncor Gold Inc. in June 2021. Loncor Gold Inc. was founded in 1993 and is headquartered in Toronto, Canada.