McEwen Mining (NYSE:MUX) and Skeena Resources (NYSE:SKE) Head-To-Head Analysis

McEwen Mining (NYSE:MUX) and Skeena Resources (NYSE:SKE) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares McEwen Mining and Skeena Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McEwen Mining	44.83%	16.46%	12.58%
Skeena Resources	N/A	-87.83%	-63.67%

Institutional and Insider Ownership

17.0% of McEwen Mining shares are held by institutional investors. Comparatively, 45.2% of Skeena Resources shares are held by institutional investors. 17.1% of McEwen Mining shares are held by insiders. Comparatively, 2.0% of Skeena Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

McEwen Mining has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for McEwen Mining and Skeena Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McEwen Mining	0	0	2	0	3.00
Skeena Resources	0	0	1	0	3.00

McEwen Mining presently has a consensus price target of $13.50, indicating a potential upside of 45.79%. Skeena Resources has a consensus price target of $18.00, indicating a potential upside of 320.56%. Given Skeena Resources’ higher possible upside, analysts clearly believe Skeena Resources is more favorable than McEwen Mining.

Valuation and Earnings

This table compares McEwen Mining and Skeena Resources’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McEwen Mining	$166.23 million	2.75	$55.30 million	$1.64	5.65
Skeena Resources	N/A	N/A	-$80.73 million	($1.02)	-4.20

McEwen Mining has higher revenue and earnings than Skeena Resources. Skeena Resources is trading at a lower price-to-earnings ratio than McEwen Mining, indicating that it is currently the more affordable of the two stocks.

Summary

McEwen Mining beats Skeena Resources on 10 of the 12 factors compared between the two stocks.

About McEwen Mining

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.

About Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.