First Majestic Silver (NYSE:AG) and Rare Element Resource (OTCMKTS:REEMF) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Volatility & Risk
First Majestic Silver has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Rare Element Resource has a beta of 3.43, suggesting that its share price is 243% more volatile than the S&P 500.
Insider and Institutional Ownership
25.7% of First Majestic Silver shares are held by institutional investors. Comparatively, 0.0% of Rare Element Resource shares are held by institutional investors. 0.9% of First Majestic Silver shares are held by company insiders. Comparatively, 5.7% of Rare Element Resource shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares First Majestic Silver and Rare Element Resource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Majestic Silver||-33.27%||-5.13%||-3.49%|
|Rare Element Resource||N/A||-44.49%||-23.19%|
Valuation & Earnings
This table compares First Majestic Silver and Rare Element Resource’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Majestic Silver||$252.29 million||3.68||-$53.27 million||($0.04)||-120.00|
|Rare Element Resource||N/A||N/A||-$850,000.00||N/A||N/A|
Rare Element Resource has lower revenue, but higher earnings than First Majestic Silver.
This is a breakdown of current recommendations for First Majestic Silver and Rare Element Resource, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Majestic Silver||0||2||4||0||2.67|
|Rare Element Resource||0||0||0||0||N/A|
First Majestic Silver presently has a consensus price target of $8.58, suggesting a potential upside of 78.82%. Given First Majestic Silver’s higher probable upside, research analysts clearly believe First Majestic Silver is more favorable than Rare Element Resource.
First Majestic Silver beats Rare Element Resource on 6 of the 10 factors compared between the two stocks.
First Majestic Silver Company Profile
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver production in Mexico. It owns and operates six silver producing mines, including the Santa Elena Silver/Gold Mine covering an area of 101,837 hectares located in Sonora; La Encantada Silver Mine covering an area of 4,076 hectares situated in Coahuila; La Parrilla Silver Mine covering an area of 69,478 hectares located in Durango; Del Toro Silver Mine covering an area of 2,159 hectares situated in Zacatecas; San Martin Silver Mine covering an area of 38,512 hectares located in Jalisco; and La Guitarra Silver Mine that consists of 39,714 hectares situated in México State. 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 founded in 1979 and is headquartered in Vancouver, Canada.
Rare Element Resource Company Profile
Rare Element Resources Ltd. explores for mineral properties in the United States. The company primarily explores for gold and rare earth element (REE) deposits. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in central Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.
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