share_log

Gatos Silver (NYSE:GATO) Versus Fortuna Silver Mines (NYSE:FSM) Critical Comparison

Defense World ·  Sep 13, 2022 02:02

Gatos Silver (NYSE:GATO – Get Rating) and Fortuna Silver Mines (NYSE:FSM – Get Rating) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Institutional & Insider Ownership

53.3% of Gatos Silver shares are owned by institutional investors. Comparatively, 27.9% of Fortuna Silver Mines shares are owned by institutional investors. 5.8% of Gatos Silver shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Get Gatos Silver alerts:

Volatility and Risk

Gatos Silver has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Fortuna Silver Mines has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares Gatos Silver and Fortuna Silver Mines' net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets
Gatos Silver N/A N/A N/A
Fortuna Silver Mines 6.26% 6.06% 4.28%

Valuation and Earnings

This table compares Gatos Silver and Fortuna Silver Mines' gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gatos Silver N/A N/A $40.44 million N/A N/A
Fortuna Silver Mines $599.85 million 1.26 $59.40 million $0.15 17.33

Fortuna Silver Mines has higher revenue and earnings than Gatos Silver.

Analyst Recommendations

This is a summary of current recommendations and price targets for Gatos Silver and Fortuna Silver Mines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gatos Silver 0 5 0 0 2.00
Fortuna Silver Mines 0 2 4 0 2.67

Gatos Silver presently has a consensus price target of $4.50, indicating a potential upside of 54.11%. Fortuna Silver Mines has a consensus price target of $5.88, indicating a potential upside of 125.96%. Given Fortuna Silver Mines' stronger consensus rating and higher probable upside, analysts clearly believe Fortuna Silver Mines is more favorable than Gatos Silver.

Summary

Fortuna Silver Mines beats Gatos Silver on 8 of the 11 factors compared between the two stocks.

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.

About Fortuna Silver Mines

(Get Rating)

Fortuna Silver Mines Inc. engages in the acquisition, exploration, and mining of precious and base metal deposits in Argentina, Burkina Faso, Mexico, Peru, and Côte d'Ivoire. It holds interest in the Caylloma silver, lead, and zinc mine located in southern Peru; the San Jose silver and gold mine situated in southern Mexico; the Lindero gold project located in Argentina; Yaramoko gold mine situated in south western Burkina Faso; and Séguéla gold mine located in south western Côte d'Ivoire. The company was formerly known as Fortuna Ventures Inc. and changed its name to Fortuna Silver Mines Inc. in June 2005. Fortuna Silver Mines Inc. was incorporated in 1990 and is based in Vancouver, Canada.

Receive News & Ratings for Gatos Silver Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gatos Silver and related companies with MarketBeat.com's FREE daily email newsletter.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment