Excellon Resources (OTCMKTS:EXNRF) versus Gatos Silver (NYSE:GATO) Head-To-Head Review

Excellon Resources (OTCMKTS:EXNRF) and Gatos Silver (NYSE:GATO) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares Excellon Resources and Gatos Silver”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Excellon Resources	$25.82 million	0.29	$6.53 million	($0.34)	-0.21
Gatos Silver	N/A	N/A	$12.86 million	$0.22	67.09

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

Risk & Volatility

Excellon Resources has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Excellon Resources	N/A	-53.24%	-75.70%
Gatos Silver	N/A	7.41%	7.03%

Institutional & Insider Ownership

44.8% of Gatos Silver shares are held by institutional investors. 3.2% of Excellon Resources shares are held by insiders. Comparatively, 3.8% of Gatos Silver shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Excellon Resources and Gatos Silver, as reported by MarketBeat.com.

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

Gatos Silver has a consensus target price of $12.40, suggesting a potential downside of 15.99%. Given Gatos Silver’s higher possible upside, analysts plainly believe Gatos Silver is more favorable than Excellon Resources.

Summary

Gatos Silver beats Excellon Resources on 11 of the 12 factors compared between the two stocks.

About Excellon Resources

Excellon Resources Inc. engages in the acquisition, exploration, and advancement of mineral properties. It primarily explores for silver, lead, zinc, and gold deposits, as well as base metals. The company holds 100% interests in the Platosa property covering an area of approximately 11,000 hectares located in Durango State, Mexico; the Evolución property that covers an area of 31,280 hectares situated in the states of Durango and Zacatecas, Mexico; and the Silver City project totaling an area of 340 square kilometers in Saxony, Germany. It also holds 100% interests in the Kilgore project comprising 789 unpatented federal lode claims that covers an area of 6,788 hectares located in Clark County, eastern Idaho; and the Oakley project covering an area of 2,833 hectares in Oakley, Idaho. In addition, the company has an option to acquire the La Negra project located in Querétaro State, Mexico. Excellon Resources Inc. was incorporated in 1987 and is based in Toronto, Canada.

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.