Gatos Silver (NYSE:GATO) & RCF Acquisition (NYSE:RCFA) Head to Head Contrast

RCF Acquisition (NYSE:RCFA) and Gatos Silver (NYSE:GATO) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

24.6% of RCF Acquisition shares are owned by institutional investors. Comparatively, 44.8% of Gatos Silver shares are owned by institutional investors. 19.9% of RCF Acquisition shares are owned by insiders. Comparatively, 3.8% of Gatos Silver shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for RCF Acquisition and Gatos Silver, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RCF Acquisition	0	0	0	0	N/A
Gatos Silver	0	2	2	1	2.80

Gatos Silver has a consensus price target of $11.80, suggesting a potential downside of 6.20%. Given Gatos Silver’s higher probable upside, analysts clearly believe Gatos Silver is more favorable than RCF Acquisition.

Valuation & Earnings

This table compares RCF Acquisition and Gatos Silver’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RCF Acquisition	N/A	N/A	$4.74 million	N/A	N/A
Gatos Silver	N/A	N/A	$12.86 million	$0.22	57.18

Volatility and Risk

RCF Acquisition has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.

Profitability

This table compares RCF Acquisition and Gatos Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RCF Acquisition	N/A	-37.34%	4.24%
Gatos Silver	N/A	7.41%	7.03%

Summary

Gatos Silver beats RCF Acquisition on 8 of the 9 factors compared between the two stocks.

About RCF Acquisition

RCF Acquisition Corp. does not have significant operations. It focuses to target assets or businesses of scale across the critical minerals value chain that are poised to benefit over the long-term from the substantial market opportunity created by the global energy transition. The company was incorporated in 2021 and is based in Denver, Colorado.

About Gatos Silver

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, 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 headquartered in Vancouver, Canada.