Platinum Group Metals (NYSE:PLG – Get Free Report) and Gatos Silver (NYSE:GATO – Get Free Report) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Valuation and Earnings
This table compares Platinum Group Metals 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 | |
Platinum Group Metals | N/A | N/A | -$5.66 million | ($0.07) | -20.43 |
Gatos Silver | N/A | N/A | $12.86 million | $0.22 | 68.59 |
Platinum Group Metals is trading at a lower price-to-earnings ratio than Gatos Silver, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
Profitability
This table compares Platinum Group Metals and Gatos Silver’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Platinum Group Metals | N/A | -11.73% | -11.24% |
Gatos Silver | N/A | 7.41% | 7.03% |
Risk and Volatility
Platinum Group Metals has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Platinum Group Metals and Gatos Silver, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Platinum Group Metals | 0 | 0 | 0 | 0 | N/A |
Gatos Silver | 0 | 2 | 2 | 1 | 2.80 |
Gatos Silver has a consensus target price of $12.90, indicating a potential downside of 14.51%. Given Gatos Silver’s higher possible upside, analysts clearly believe Gatos Silver is more favorable than Platinum Group Metals.
Summary
Gatos Silver beats Platinum Group Metals on 11 of the 11 factors compared between the two stocks.
About Platinum Group Metals
Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, 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.
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