Timberline Resources (OTCMKTS:TLRS – Get Rating) and MAG Silver (NYSE:MAG – Get Rating) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.
Profitability
This table compares Timberline Resources and MAG Silver's net margins, return on equity and return on assets.
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| Net Margins | Return on Equity | Return on Assets |
| Timberline Resources | N/A | -31.33% | -30.19% |
| MAG Silver | N/A | 4.61% | 4.54% |
Analyst Recommendations
This is a summary of current ratings for Timberline Resources and MAG Silver, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Timberline Resources | 0 | 0 | 0 | 0 | N/A |
| MAG Silver | 0 | 0 | 1 | 0 | 3.00 |
MAG Silver has a consensus target price of $16.50, suggesting a potential upside of 54.64%. Given MAG Silver's higher probable upside, analysts clearly believe MAG Silver is more favorable than Timberline Resources.
Valuation and Earnings
This table compares Timberline Resources and MAG Silver's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Timberline Resources | N/A | N/A | -$4.71 million | ($0.03) | -3.67 |
| MAG Silver | N/A | N/A | $6.03 million | $0.18 | 59.28 |
Timberline Resources is trading at a lower price-to-earnings ratio than MAG Silver, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Timberline Resources has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, MAG Silver has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Insider and Institutional Ownership
41.9% of MAG Silver shares are held by institutional investors. 45.4% of Timberline Resources shares are held by company insiders. Comparatively, 8.7% of MAG Silver shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
MAG Silver beats Timberline Resources on 8 of the 10 factors compared between the two stocks.
About Timberline Resources
(Get Rating)
Timberline Resources Corporation engages in the exploration, evaluation, and acquisition of mineral prospects in the United States. It primarily explores for gold, silver, and copper deposits. Its flagship property is the Eureka project, which covers an area of approximately 16,000 acres located in the southern part of the Eureka mining district, Nevada. The company also holds interest in the Paiute project covering an area of approximately 1,346 acres located in the Battle Mountain mining district, Lander and Humboldt Counties, Nevada. The company was formerly known as Silver Crystal Mines, Inc. and changed its name to Timberline Resources Corporation in February 2004. Timberline Resources Corporation was incorporated in 1968 and is headquartered in Coeur d'Alene, Idaho.
About MAG Silver
(Get Rating)
MAG Silver Corp. engages in the exploration and development of precious metal mining properties. The company explores for silver, gold, lead, and zinc deposits. It primarily holds 44% interest in the Juanicipio project located in the Fresnillo District, Zacatecas State, Mexico. The company is headquartered in Vancouver, Canada.
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