Gold Resource (NYSE:GORO) versus SilverCrest Metals (NYSE:SILV) Critical Analysis

Gold Resource (NYSE:GORO) and SilverCrest Metals (NYSE:SILV) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Gold Resource and SilverCrest Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Resource	0	0	1	0	3.00
SilverCrest Metals	0	2	1	0	2.33

Gold Resource currently has a consensus price target of $1.75, indicating a potential upside of 688.29%. SilverCrest Metals has a consensus price target of $10.13, indicating a potential upside of 3.21%. Given Gold Resource’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Resource is more favorable than SilverCrest Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gold Resource	-61.31%	-35.25%	-16.15%
SilverCrest Metals	30.85%	23.35%	20.98%

Insider and Institutional Ownership

18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 44.8% of SilverCrest Metals shares are owned by institutional investors. 2.5% of Gold Resource shares are owned by insiders. Comparatively, 4.1% of SilverCrest Metals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Gold Resource and SilverCrest Metals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Resource	$73.90 million	0.29	-$16.02 million	($0.49)	-0.45
SilverCrest Metals	$278.08 million	5.26	$116.72 million	$0.57	17.21

SilverCrest Metals has higher revenue and earnings than Gold Resource. Gold Resource 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 & Risk

Gold Resource has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, SilverCrest Metals has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Summary

SilverCrest Metals beats Gold Resource on 10 of the 13 factors compared between the two stocks.

About Gold Resource

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.

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.