Comparing SilverCrest Metals (NYSE:SILV) and Gold Royalty (NYSE:GROY)

SilverCrest Metals (NYSE:SILV) and Gold Royalty (NYSE:GROY) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for SilverCrest Metals and Gold Royalty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	1	1	0	2.50
Gold Royalty	0	0	2	0	3.00

SilverCrest Metals presently has a consensus target price of $10.13, suggesting a potential upside of 9.40%. Gold Royalty has a consensus target price of $3.67, suggesting a potential upside of 169.61%. Given Gold Royalty’s stronger consensus rating and higher possible upside, analysts clearly believe Gold Royalty is more favorable than SilverCrest Metals.

Earnings & Valuation

This table compares SilverCrest Metals and Gold Royalty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverCrest Metals	$245.13 million	5.61	$116.72 million	$0.83	11.15
Gold Royalty	$6.50 million	35.37	-$26.76 million	($0.17)	-8.00

SilverCrest Metals has higher revenue and earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SilverCrest Metals and Gold Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SilverCrest Metals	40.61%	25.66%	23.23%
Gold Royalty	-381.76%	-0.53%	-0.40%

Institutional and Insider Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

SilverCrest Metals has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Summary

SilverCrest Metals beats Gold Royalty on 10 of the 14 factors compared between the two stocks.

About SilverCrest Metals

SilverCrest Metals Inc. engages in the acquiring, exploration, and development of precious metal properties in Mexico. The company primarily explores for silver and gold properties. Its focuses on principal property the Las Chispas Mine that consists of 28 concessions totaling of approximately 1,401 hectares located in Sonora, Mexico, as well as operates a portfolio of El Picacho, Cruz de Mayo, and Angel de Plata properties in Sonora Mexico. The company was incorporated in 2015 and is headquartered in Vancouver, Canada.

About Gold Royalty

Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.