Kinross Gold (NYSE:KGC) versus Gatos Silver (NYSE:GATO) Critical Comparison

Kinross Gold (NYSE:KGC) and Gatos Silver (NYSE:GATO) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinross Gold	10.91%	9.32%	5.52%
Gatos Silver	N/A	7.41%	7.03%

Analyst Recommendations

This is a summary of current ratings and target prices for Kinross Gold and Gatos Silver, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinross Gold	0	2	3	0	2.60
Gatos Silver	0	4	0	1	2.40

Kinross Gold presently has a consensus target price of $9.50, suggesting a potential downside of 4.76%. Gatos Silver has a consensus target price of $12.90, suggesting a potential downside of 28.65%. Given Kinross Gold’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kinross Gold is more favorable than Gatos Silver.

Earnings and Valuation

This table compares Kinross Gold and Gatos Silver”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$4.24 billion	2.89	$416.30 million	$0.41	24.33
Gatos Silver	N/A	N/A	$12.86 million	$0.40	45.20

Kinross Gold has higher revenue and earnings than Gatos Silver. Kinross Gold is trading at a lower price-to-earnings ratio than Gatos Silver, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

63.7% of Kinross Gold shares are owned by institutional investors. Comparatively, 44.8% of Gatos Silver shares are owned by institutional investors. 1.0% of Kinross Gold shares are owned by insiders. Comparatively, 3.8% of Gatos Silver shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Kinross Gold has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.

Summary

Kinross Gold beats Gatos Silver on 9 of the 14 factors compared between the two stocks.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.

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.