Comparing Gatos Silver (NYSE:GATO) & Mexus Gold US (OTCMKTS:MXSG)

Gatos Silver (NYSE:GATO) and Mexus Gold US (OTCMKTS:MXSG) 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 dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Volatility and Risk

Gatos Silver has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Mexus Gold US has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Gatos Silver and Mexus Gold US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gatos Silver	N/A	10.37%	9.94%
Mexus Gold US	N/A	N/A	N/A

Valuation & Earnings

This table compares Gatos Silver and Mexus Gold US”s 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	$0.49	30.51
Mexus Gold US	N/A	N/A	-$1.80 million	N/A	N/A

Institutional and Insider Ownership

44.8% of Gatos Silver shares are held by institutional investors. 3.8% of Gatos Silver shares are held by company insiders. Comparatively, 8.6% of Mexus Gold US shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gatos Silver and Mexus Gold US, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gatos Silver	0	4	0	1	2.40
Mexus Gold US	0	0	0	0	0.00

Gatos Silver currently has a consensus target price of $12.90, indicating a potential downside of 13.71%. Given Mexus Gold US’s higher probable upside, analysts clearly believe Mexus Gold US is more favorable than Gatos Silver.

Summary

Gatos Silver beats Mexus Gold US on 7 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 Mexus Gold US

Mexus Gold US, an exploration stage mining company, engages in the evaluation, acquisition, exploration, and advancement of gold, silver, copper, and other precious metal projects in the United Mexican States. The company holds 100% interest in the Santa Elena prospect comprising 9 concessions covering an area of approximately 6500 acres located to the northwest of Caborca, Sonora State; and 90% interest in the Mabel Property covering an area of approximately 2,128 hectares located to the southwest of Nogales, Sonora State. It also owns mineral rights to Ures Property comprising 9 concessions covering an area of approximately 10,000 acres located in Sonora State, Mexico. The company was formerly known as Action Fashions, Ltd. and changed its name to Mexus Gold US in September 2009. Mexus Gold US was incorporated in 1990 and is based in Carson City, Nevada.