Fortuna Silver Mines (NYSE: FSM) and Pretium Resources (NYSE:PVG) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
Institutional & Insider Ownership
43.9% of Fortuna Silver Mines shares are held by institutional investors. Comparatively, 49.0% of Pretium Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Fortuna Silver Mines has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, Pretium Resources has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500.
Valuation and Earnings
This table compares Fortuna Silver Mines and Pretium Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fortuna Silver Mines||$210.30 million||3.67||$17.85 million||$0.24||20.13|
|Pretium Resources||N/A||N/A||-$60.72 million||($0.12)||-59.83|
Fortuna Silver Mines has higher revenue and earnings than Pretium Resources. Pretium Resources is trading at a lower price-to-earnings ratio than Fortuna Silver Mines, indicating that it is currently the more affordable of the two stocks.
This table compares Fortuna Silver Mines and Pretium Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortuna Silver Mines||15.44%||9.15%||7.26%|
This is a summary of recent ratings and recommmendations for Fortuna Silver Mines and Pretium Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortuna Silver Mines||0||1||4||0||2.80|
Fortuna Silver Mines currently has a consensus price target of $7.50, indicating a potential upside of 55.28%. Pretium Resources has a consensus price target of $14.60, indicating a potential upside of 103.34%. Given Pretium Resources’ higher probable upside, analysts clearly believe Pretium Resources is more favorable than Fortuna Silver Mines.
Fortuna Silver Mines beats Pretium Resources on 9 of the 12 factors compared between the two stocks.
Fortuna Silver Mines Company Profile
Fortuna Silver Mines Inc. is a Canada-based mining company engaged in silver mining and related activities in Latin America, including exploration, extraction and processing. The Company operates the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru and the San Jose silver and gold mine (San Jose) in southern Mexico. The Company’s segments include Corporate, Bateas and Cuzcatlan. The Company owns interest in the Caylloma mine and related mining concessions located in southern Peru. The Caylloma property is located in the Caylloma Mining District, approximately 220 kilometers north-northwest of Arequipa, Peru. The Company produces approximately 1.7 million ounces of silver and over 1,160 ounces of gold at Caylloma. The Company’s San Jose property, which covers a silver gold bearing epithermal vein system is located in the state of Oaxaca in southern Mexico. The Company produces approximately 4.9 million ounces of silver and over 38,530 ounces of gold at San Jose.
Pretium Resources Company Profile
Pretium Resources Inc. is a Canada-based exploration and development company. The Company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas. The Company’s projects include Brucejack Project and the Snowfield Project, both of which are located in northwestern British Columbia. The Company’s focus is on advancing the Brucejack Project to production as a high-grade gold underground mine. The Brucejack Project is the Company’s material mineral project, which is located approximately 950 kilometers northwest of Vancouver, British Columbia, and over 65 kilometers north-northwest of Stewart, British Columbia. The Brucejack Project consists of approximately four mining leases and over six mineral claims totaling approximately 3,050 hectares in area. The Snowfield Project borders the Brucejack Project to the north and consists of over one mineral claim with an area of approximately 1,267.43 hectares.
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