Head-To-Head Analysis: Skeena Resources (NYSE:SKE) and Platinum Group Metals (NYSE:PLG)

Skeena Resources (NYSE:SKE) and Platinum Group Metals (NYSE:PLG) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

45.2% of Skeena Resources shares are owned by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are owned by institutional investors. 2.0% of Skeena Resources shares are owned by company insiders. Comparatively, 0.0% of Platinum Group Metals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Skeena Resources and Platinum Group Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skeena Resources	N/A	-87.83%	-63.67%
Platinum Group Metals	N/A	-10.96%	-10.51%

Analyst Recommendations

This is a summary of current ratings and price targets for Skeena Resources and Platinum Group Metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skeena Resources	0	0	1	0	3.00
Platinum Group Metals	0	0	0	0	N/A

Skeena Resources presently has a consensus price target of $18.00, indicating a potential upside of 297.35%. Given Skeena Resources’ higher possible upside, research analysts clearly believe Skeena Resources is more favorable than Platinum Group Metals.

Valuation and Earnings

This table compares Skeena Resources and Platinum Group Metals’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skeena Resources	N/A	N/A	-$80.73 million	($1.02)	-4.44
Platinum Group Metals	N/A	N/A	-$5.66 million	($0.06)	-29.33

Platinum Group Metals is trading at a lower price-to-earnings ratio than Skeena Resources, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Skeena Resources has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

About Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.