Head-To-Head Contrast: Gold Resource (NYSE:GORO) and Endeavour Silver (NYSE:EXK)

Endeavour Silver (NYSE:EXK) and Gold Resource (NYSE:GORO) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Earnings & Valuation

This table compares Endeavour Silver and Gold Resource’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endeavour Silver	$205.46 million	2.99	$6.12 million	$0.02	128.06
Gold Resource	$97.73 million	0.42	-$16.02 million	($0.17)	-2.71

Endeavour Silver has higher revenue and earnings than Gold Resource. Gold Resource is trading at a lower price-to-earnings ratio than Endeavour Silver, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

20.1% of Endeavour Silver shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 0.8% of Endeavour Silver shares are held by insiders. Comparatively, 2.7% of Gold Resource shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Endeavour Silver and Gold Resource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endeavour Silver	0	0	2	0	3.00
Gold Resource	0	0	1	0	3.00

Endeavour Silver currently has a consensus price target of $7.00, suggesting a potential upside of 173.44%. Gold Resource has a consensus price target of $1.50, suggesting a potential upside of 225.31%. Given Gold Resource’s higher probable upside, analysts clearly believe Gold Resource is more favorable than Endeavour Silver.

Volatility and Risk

Endeavour Silver has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.

Profitability

This table compares Endeavour Silver and Gold Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Endeavour Silver	2.98%	2.28%	1.83%
Gold Resource	-16.39%	-15.48%	-8.43%

Summary

Endeavour Silver beats Gold Resource on 11 of the 13 factors compared between the two stocks.

About Endeavour Silver

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.

About Gold Resource

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company explores for copper, lead, and zinc deposits. Its principal asset is the 100% owned Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. Gold Resource Corporation was founded in 1998 and is headquartered in Denver, Colorado.