New Found Gold (NYSE:NFGC – Get Free Report) and SilverCrest Metals (NYSE:SILV – Get Free Report) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Earnings and Valuation
This table compares New Found Gold and SilverCrest Metals”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
New Found Gold | N/A | N/A | -$59.18 million | ($0.22) | -7.32 |
SilverCrest Metals | $278.08 million | 4.90 | $116.72 million | $0.57 | 16.09 |
SilverCrest Metals has higher revenue and earnings than New Found Gold. New Found 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.
Insider and Institutional Ownership
Volatility and Risk
New Found Gold has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, SilverCrest Metals has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Profitability
This table compares New Found Gold and SilverCrest Metals’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
New Found Gold | N/A | -82.80% | -68.88% |
SilverCrest Metals | 30.85% | 23.35% | 20.98% |
Analyst Recommendations
This is a breakdown of recent ratings for New Found Gold and SilverCrest Metals, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
New Found Gold | 0 | 0 | 1 | 0 | 3.00 |
SilverCrest Metals | 0 | 2 | 1 | 0 | 2.33 |
New Found Gold currently has a consensus target price of $9.00, indicating a potential upside of 459.01%. SilverCrest Metals has a consensus target price of $10.13, indicating a potential upside of 10.41%. Given New Found Gold’s stronger consensus rating and higher probable upside, equities analysts plainly believe New Found Gold is more favorable than SilverCrest Metals.
Summary
SilverCrest Metals beats New Found Gold on 10 of the 12 factors compared between the two stocks.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.
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.
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