Gatos Silver (NYSE:GATO – Get Rating) and Gold Resource (NYSE:GORO – Get Rating) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Risk and Volatility
Gatos Silver has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.
Get Gatos Silver alerts:Profitability
This table compares Gatos Silver and Gold Resource's 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 |
| Gold Resource | 7.26% | 9.35% | 5.70% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Gatos Silver and Gold Resource, as reported by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gatos Silver | 0 | 5 | 0 | 0 | 2.00 |
| Gold Resource | 0 | 0 | 2 | 0 | 3.00 |
Gatos Silver presently has a consensus price target of $4.50, indicating a potential upside of 101.79%. Gold Resource has a consensus price target of $4.75, indicating a potential upside of 210.46%. Given Gold Resource's stronger consensus rating and higher probable upside, analysts plainly believe Gold Resource is more favorable than Gatos Silver.
Earnings and Valuation
This table compares Gatos Silver and Gold Resource's gross 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 | $40.44 million | N/A | N/A |
| Gold Resource | $125.20 million | 1.08 | $8.03 million | $0.13 | 11.77 |
Gatos Silver has higher earnings, but lower revenue than Gold Resource.
Insider and Institutional Ownership
53.3% of Gatos Silver shares are owned by institutional investors. Comparatively, 28.8% of Gold Resource shares are owned by institutional investors. 5.8% of Gatos Silver shares are owned by insiders. Comparatively, 1.1% of Gold Resource shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Gold Resource beats Gatos Silver on 7 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 Gold Resource
(Get Rating)
Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also 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. The company was founded in 1998 and is headquartered in Denver, Colorado.
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