Analyzing SilverCrest Metals (NYSE:SILV) & Fresnillo (OTCMKTS:FNLPF)

SilverCrest Metals (NYSE:SILV) and Fresnillo (OTCMKTS:FNLPF) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

SilverCrest Metals has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Fresnillo has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SilverCrest Metals and Fresnillo, as provided by MarketBeat.

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

SilverCrest Metals presently has a consensus price target of $10.13, suggesting a potential downside of 3.57%. Given SilverCrest Metals’ higher probable upside, research analysts clearly believe SilverCrest Metals is more favorable than Fresnillo.

Insider & Institutional Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares SilverCrest Metals and Fresnillo’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%
Fresnillo	N/A	N/A	N/A

Valuation & Earnings

This table compares SilverCrest Metals and Fresnillo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverCrest Metals	$245.13 million	6.37	$116.72 million	$0.57	18.42
Fresnillo	$2.71 billion	2.32	$233.91 million	N/A	N/A

Fresnillo has higher revenue and earnings than SilverCrest Metals.

Summary

SilverCrest Metals beats Fresnillo 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 Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.