Fortuna Silver Mines (NYSE: FSM) and McEwen Mining (NYSE:MUX) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Earnings & Valuation
This table compares Fortuna Silver Mines and McEwen Mining’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fortuna Silver Mines||$210.30 million||3.70||$17.85 million||$0.24||20.33|
|McEwen Mining||$60.39 million||12.35||$21.05 million||($0.06)||-37.33|
Risk & Volatility
Fortuna Silver Mines has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, McEwen Mining has a beta of -1.43, meaning that its share price is 243% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Fortuna Silver Mines and McEwen Mining, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortuna Silver Mines||0||1||4||0||2.80|
Fortuna Silver Mines presently has a consensus price target of $7.50, indicating a potential upside of 53.69%. McEwen Mining has a consensus price target of $4.00, indicating a potential upside of 78.57%. Given McEwen Mining’s stronger consensus rating and higher possible upside, analysts plainly believe McEwen Mining is more favorable than Fortuna Silver Mines.
This table compares Fortuna Silver Mines and McEwen Mining’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortuna Silver Mines||15.44%||9.15%||7.26%|
Insider and Institutional Ownership
42.2% of Fortuna Silver Mines shares are owned by institutional investors. Comparatively, 27.7% of McEwen Mining shares are owned by institutional investors. 26.1% of McEwen Mining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Fortuna Silver Mines beats McEwen Mining on 9 of the 14 factors compared between the two stocks.
About Fortuna Silver Mines
Fortuna Silver Mines Inc. is a Canada-based mining company engaged in silver mining and related activities in Latin America, including exploration, extraction and processing. The Company operates the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru and the San Jose silver and gold mine (San Jose) in southern Mexico. The Company’s segments include Corporate, Bateas and Cuzcatlan. The Company owns interest in the Caylloma mine and related mining concessions located in southern Peru. The Caylloma property is located in the Caylloma Mining District, approximately 220 kilometers north-northwest of Arequipa, Peru. The Company produces approximately 1.7 million ounces of silver and over 1,160 ounces of gold at Caylloma. The Company’s San Jose property, which covers a silver gold bearing epithermal vein system is located in the state of Oaxaca in southern Mexico. The Company produces approximately 4.9 million ounces of silver and over 38,530 ounces of gold at San Jose.
About McEwen Mining
McEwen Mining Inc. is a mining and minerals production and exploration company. The Company is focused on precious and base metals in Argentina, Mexico and the United States. The Company’s segments include Mexico, Minera Santa Cruz S.A. (MSC), Nevada and Los Azules. The Mexico Operations segment includes properties, such as El Gallo 1 mine and the El Gallo 2 project. The MSC segment includes properties, such as the San Jose mine and other concessions located around the mine. The Company’s properties in Nevada segment include Gold Bar project and exploration properties. The Gold Bar project is a proposed mine project. The Los Azules segment includes various properties, such as Los Azules project, Chonchones project, Laganoso project, La Cerrada project and Other Argentina properties. The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile.
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