Gold Resource (NYSE:GORO) & Endeavour Silver (NYSE:EXK) Head-To-Head Review

Gold Resource (NYSE:GORO) and Endeavour Silver (NYSE:EXK) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Gold Resource and Endeavour Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Resource	-16.39%	-15.48%	-8.43%
Endeavour Silver	2.98%	2.28%	1.83%

Earnings and Valuation

This table compares Gold Resource and Endeavour Silver’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Resource	$97.73 million	0.44	-$16.02 million	($0.17)	-2.86
Endeavour Silver	$205.46 million	3.05	$6.12 million	$0.02	130.57

Endeavour Silver has higher revenue and earnings than Gold Resource. Gold Resource is trading at a lower price-to-earnings ratio than Endeavour Silver, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 20.1% of Endeavour Silver shares are owned by institutional investors. 2.7% of Gold Resource shares are owned by company insiders. Comparatively, 0.8% of Endeavour Silver shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gold Resource and Endeavour Silver, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Resource	0	0	1	0	3.00
Endeavour Silver	0	0	2	0	3.00

Gold Resource presently has a consensus price target of $1.50, suggesting a potential upside of 208.64%. Endeavour Silver has a consensus price target of $7.00, suggesting a potential upside of 168.20%. Given Gold Resource’s higher probable upside, research analysts clearly believe Gold Resource is more favorable than Endeavour Silver.

Volatility and Risk

Gold Resource has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Endeavour Silver has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Summary

Endeavour Silver beats Gold Resource on 11 of the 13 factors compared between the two stocks.

About Gold Resource

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company explores for copper, lead, and zinc deposits. Its principal asset is the 100% owned Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. Gold Resource Corporation was founded in 1998 and is headquartered in Denver, Colorado.

About Endeavour Silver

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.