Hycroft Mining (NASDAQ:HYMC) & Gatos Silver (NYSE:GATO) Financial Contrast

Gatos Silver (NYSE:GATO) and Hycroft Mining (NASDAQ:HYMC) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Profitability

This table compares Gatos Silver and Hycroft Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gatos Silver	N/A	3.63%	3.33%
Hycroft Mining	N/A	-178.38%	-25.25%

Earnings and Valuation

This table compares Gatos Silver and Hycroft Mining’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gatos Silver	N/A	N/A	$12.86 million	$0.19	57.16
Hycroft Mining	$33.23 million	2.25	-$55.02 million	($2.90)	-1.22

Gatos Silver has higher earnings, but lower revenue than Hycroft Mining. Hycroft Mining is trading at a lower price-to-earnings ratio than Gatos Silver, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

44.8% of Gatos Silver shares are held by institutional investors. Comparatively, 7.4% of Hycroft Mining shares are held by institutional investors. 1.5% of Gatos Silver shares are held by company insiders. Comparatively, 1.2% of Hycroft Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Gatos Silver and Hycroft Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gatos Silver	0	2	2	0	2.50
Hycroft Mining	0	0	0	0	N/A

Gatos Silver currently has a consensus price target of $10.25, indicating a potential downside of 5.62%. Given Gatos Silver’s higher possible upside, research analysts clearly believe Gatos Silver is more favorable than Hycroft Mining.

Risk and Volatility

Gatos Silver has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Hycroft Mining has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.

Summary

Gatos Silver beats Hycroft Mining on 10 of the 11 factors compared between the two stocks.

About Gatos Silver

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

About Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.