IAMGOLD (NYSE:IAG – Get Rating) and Gatos Silver (NYSE:GATO – Get Rating) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Valuation & Earnings
This table compares IAMGOLD and Gatos Silver's gross revenue, earnings per share (EPS) and valuation.
Get IAMGOLD alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IAMGOLD | $1.15 billion | 0.55 | -$254.40 million | ($0.54) | -2.46 |
| Gatos Silver | N/A | N/A | $40.44 million | N/A | N/A |
Gatos Silver has lower revenue, but higher earnings than IAMGOLD.
Profitability
This table compares IAMGOLD and Gatos Silver's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| IAMGOLD | -19.95% | 1.84% | 1.07% |
| Gatos Silver | N/A | N/A | N/A |
Risk and Volatility
IAMGOLD has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500.
Institutional and Insider Ownership
50.9% of IAMGOLD shares are held by institutional investors. Comparatively, 53.3% of Gatos Silver shares are held by institutional investors. 5.8% of Gatos Silver shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for IAMGOLD and Gatos Silver, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IAMGOLD | 6 | 2 | 0 | 0 | 1.25 |
| Gatos Silver | 0 | 5 | 0 | 0 | 2.00 |
IAMGOLD presently has a consensus price target of $2.75, suggesting a potential upside of 106.77%. Gatos Silver has a consensus price target of $4.50, suggesting a potential upside of 62.45%. Given IAMGOLD's higher possible upside, research analysts clearly believe IAMGOLD is more favorable than Gatos Silver.
Summary
Gatos Silver beats IAMGOLD on 6 of the 10 factors compared between the two stocks.
About IAMGOLD
(Get Rating)
IAMGOLD Corporation, through its subsidiaries, explores, develops, and operates gold mining properties in North America, South America, and West Africa. The company owns interests in the Rosebel mine located in Suriname, South America; the Essakane mine situated in Burkina Faso and Boto gold project located in Senegal, West Africa; and Westwood mine, covers an area of 1,925 hectare and located in Quebec and the Côté gold project, which covers an area of 586 square kilometer located in Ontario, Canada. Its exploration and development projects include the Pitangui project in Brazil; the Karita project located in Guinea; the Diakha-Siribaya project situated in Mali; and the Nelligan and Monster Lake projects located in Quebec, Canada. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.
About Gatos Silver
(Get Rating)
Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver ores. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Cerro Los Gatos mine located at the Los Gatos District in Chihuahua state, 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 based in Greenwood Village, Colorado.
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