Critical Review: First Majestic Silver (NYSE:AG) vs. SilverCrest Metals (NYSE:SILV)

First Majestic Silver (NYSE:AG) and SilverCrest Metals (NYSE:SILV) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Volatility & Risk

First Majestic Silver has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, SilverCrest Metals has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Institutional and Insider Ownership

27.2% of First Majestic Silver shares are owned by institutional investors. Comparatively, 44.8% of SilverCrest Metals shares are owned by institutional investors. 0.9% of First Majestic Silver shares are owned by insiders. Comparatively, 4.1% of SilverCrest Metals 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.

Analyst Ratings

This is a summary of recent recommendations for First Majestic Silver and SilverCrest Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Majestic Silver	0	1	1	0	2.50
SilverCrest Metals	0	2	1	0	2.33

First Majestic Silver presently has a consensus target price of $7.50, suggesting a potential upside of 26.26%. SilverCrest Metals has a consensus target price of $10.13, suggesting a potential upside of 3.47%. Given First Majestic Silver’s stronger consensus rating and higher probable upside, equities research analysts clearly believe First Majestic Silver is more favorable than SilverCrest Metals.

Profitability

This table compares First Majestic Silver and SilverCrest Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Majestic Silver	-14.89%	-4.19%	-2.89%
SilverCrest Metals	30.85%	23.35%	20.98%

Valuation & Earnings

This table compares First Majestic Silver and SilverCrest Metals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Majestic Silver	$573.80 million	3.12	-$135.11 million	($0.27)	-22.00
SilverCrest Metals	$278.08 million	5.23	$116.72 million	$0.57	17.17

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

Summary

SilverCrest Metals beats First Majestic Silver on 9 of the 13 factors compared between the two stocks.

About First Majestic Silver

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

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.