MAG Silver Corp (NYSE: MAG) and Yamana Gold (NYSE:AUY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings & Valuation

This table compares MAG Silver Corp and Yamana Gold’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MAG Silver Corp N/A N/A -$6.98 million N/A N/A
Yamana Gold $1.78 billion 1.52 $541.80 million ($0.45) -6.36

Yamana Gold has higher revenue and earnings than MAG Silver Corp.

Profitability

This table compares MAG Silver Corp and Yamana Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MAG Silver Corp N/A -3.01% -3.00%
Yamana Gold -23.63% 0.42% 0.22%

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. MAG Silver Corp does not pay a dividend. Yamana Gold pays out -4.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for MAG Silver Corp and Yamana Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MAG Silver Corp 0 0 5 2 3.29
Yamana Gold 1 6 2 0 2.11

MAG Silver Corp currently has a consensus target price of $17.33, suggesting a potential upside of 42.43%. Yamana Gold has a consensus target price of $3.73, suggesting a potential upside of 30.24%. Given MAG Silver Corp’s stronger consensus rating and higher probable upside, analysts clearly believe MAG Silver Corp is more favorable than Yamana Gold.

Institutional & Insider Ownership

42.4% of Yamana Gold shares are owned by institutional investors. 2.7% of Yamana Gold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Yamana Gold beats MAG Silver Corp on 8 of the 13 factors compared between the two stocks.

About MAG Silver Corp

MAG Silver Corp. is a mineral exploration and development company. The Company is focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property. Juanicipio Property is located in the Fresnillo District, Zacatecas State, Mexico. The Juanicipio Property includes silver-gold-lead-zinc epithermal vein deposit. The Company owns the mineral concessions comprising the Cinco de Mayo Property. The Cinco de Mayo Property is located approximately 190 kilometers northwest of the city of Chihuahua, in northern Chihuahua State, Mexico, and covers approximately 25,110 hectares. The Company owns the Guigui project located in the Santa Eulalia Mining District of Chihuahua, Mexico. Guigui project consists of approximately 8,300 hectares.

About Yamana Gold

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

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