SilverCrest Metals (NYSE:SILV) versus First Majestic Silver (NYSE:AG) Critical Contrast

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

Profitability

This table compares SilverCrest Metals and First Majestic Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SilverCrest Metals	30.85%	23.35%	20.98%
First Majestic Silver	-14.89%	-4.19%	-2.89%

Earnings & Valuation

This table compares SilverCrest Metals and First Majestic Silver”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverCrest Metals	$278.08 million	5.23	$116.72 million	$0.57	17.17
First Majestic Silver	$573.80 million	3.12	-$135.11 million	($0.27)	-22.00

SilverCrest Metals has higher earnings, but lower revenue than First Majestic Silver. First Majestic Silver is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by insiders. Comparatively, 0.9% of First Majestic Silver shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SilverCrest Metals and First Majestic Silver, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	2	1	0	2.33
First Majestic Silver	0	1	1	0	2.50

SilverCrest Metals currently has a consensus target price of $10.13, indicating a potential upside of 3.47%. First Majestic Silver has a consensus target price of $7.50, indicating a potential upside of 26.26%. Given First Majestic Silver’s stronger consensus rating and higher probable upside, analysts clearly believe First Majestic Silver is more favorable than SilverCrest Metals.

Volatility and Risk

SilverCrest Metals has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Summary

SilverCrest Metals beats First Majestic Silver on 9 of the 13 factors compared between the two stocks.

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.

About First Majestic Silver

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.