Critical Comparison: Nexa Resources (NYSE:NEXA) and Avino Silver & Gold Mines (NYSE:ASM)

Avino Silver & Gold Mines (NYSE:ASM) and Nexa Resources (NYSE:NEXA) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation & Earnings

This table compares Avino Silver & Gold Mines and Nexa Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avino Silver & Gold Mines	$52.03 million	2.87	$540,000.00	N/A	N/A
Nexa Resources	$2.60 billion	0.35	-$289.35 million	($2.22)	-3.11

Avino Silver & Gold Mines has higher earnings, but lower revenue than Nexa Resources.

Insider and Institutional Ownership

3.1% of Avino Silver & Gold Mines shares are owned by institutional investors. 4.3% of Avino Silver & Gold Mines 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.

Analyst Recommendations

This is a breakdown of current recommendations for Avino Silver & Gold Mines and Nexa Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avino Silver & Gold Mines	0	0	2	0	3.00
Nexa Resources	3	1	1	0	1.60

Avino Silver & Gold Mines currently has a consensus target price of $1.55, suggesting a potential upside of 40.91%. Nexa Resources has a consensus target price of $7.30, suggesting a potential upside of 5.64%. Given Avino Silver & Gold Mines’ stronger consensus rating and higher probable upside, research analysts clearly believe Avino Silver & Gold Mines is more favorable than Nexa Resources.

Volatility and Risk

Avino Silver & Gold Mines has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Profitability

This table compares Avino Silver & Gold Mines and Nexa Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avino Silver & Gold Mines	3.07%	9.26%	7.72%
Nexa Resources	-10.30%	-4.16%	-1.24%

Summary

Avino Silver & Gold Mines beats Nexa Resources on 12 of the 13 factors compared between the two stocks.

About Avino Silver & Gold Mines

Avino Silver & Gold Mines Ltd., together with its subsidiaries, engages in the acquisition, exploration, and advancement of mineral properties in Canada. It primarily explores for silver, gold, and copper deposits. The company owns interests in 42 mineral claims and four leased mineral claims, including Avino mine area property comprising four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares; Gomez Palacio property consists of nine exploration concessions covering 2,549 hectares; and Unification La Platosa properties, which include three leased concessions located in the state of Durango, Mexico. It also owns 100% interests in the Minto and Olympic-Kelvin properties located in British Columbia, Canada; and 14 quartz leases in Eagle property located in the Mayo Mining Division of Yukon, Canada. The company was incorporated in 1968 and is headquartered in Vancouver, Canada.

About Nexa Resources

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.