New Found Gold (NYSE:NFGC – Get Rating) and First Majestic Silver (NYSE:AG – Get Rating) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Risk & Volatility
New Found Gold has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
This table compares New Found Gold and First Majestic Silver’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Found Gold||N/A||-118.06%||-91.50%|
|First Majestic Silver||-35.59%||-3.28%||-2.19%|
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Found Gold||0||0||1||0||3.00|
|First Majestic Silver||0||0||1||0||3.00|
New Found Gold currently has a consensus price target of $10.00, indicating a potential upside of 138.66%. First Majestic Silver has a consensus price target of $9.40, indicating a potential upside of 63.19%. Given New Found Gold’s higher probable upside, analysts plainly believe New Found Gold is more favorable than First Majestic Silver.
Institutional and Insider Ownership
22.1% of New Found Gold shares are owned by institutional investors. Comparatively, 30.4% of First Majestic Silver shares are owned by institutional investors. 0.9% of First Majestic Silver shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares New Found Gold and First Majestic Silver’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Found Gold||N/A||N/A||-$69.22 million||($0.38)||-11.03|
|First Majestic Silver||$624.22 million||2.57||-$114.28 million||($0.83)||-6.94|
New Found Gold has higher earnings, but lower revenue than First Majestic Silver. New Found Gold is trading at a lower price-to-earnings ratio than First Majestic Silver, indicating that it is currently the more affordable of the two stocks.
First Majestic Silver beats New Found Gold on 6 of the 11 factors compared between the two stocks.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. The company primarily explores for gold deposit. It holds 100% interests in the Queensway project that includes 86 mineral licenses and 6,041 claims covering an area of 151,030 hectares of land located near Gander, Newfoundland; and the Lucky Strike project comprising 11,684 hectares located in Kirkland Lake, Ontario. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.
About First Majestic Silver
First Majestic Silver Corp. engages in the production, development, exploration and acquisition of mineral properties. It owns and operates producing mines in México including the La Encantada Silver Mine, La Parrilla Silver Mine, San Martin Silver Mine, La Guitarra Silver Mine, Del Toro Silver Mine, Santa Elena Silver & Gold Mine, and San Dimas Silver & Gold Mine. The company was founded by Keith Neumeyer on September 26, 1979 and is headquartered in Vancouver, Canada.
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