Rare Element Resource (OTCMKTS:REEMF) and First Majestic Silver (NYSE:AG) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Volatility & Risk
Rare Element Resource has a beta of 3.56, suggesting that its share price is 256% more volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.
This table compares Rare Element Resource and First Majestic Silver’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rare Element Resource||N/A||N/A||-$850,000.00||N/A||N/A|
|First Majestic Silver||$252.29 million||3.94||-$53.27 million||($0.04)||-128.50|
Rare Element Resource has higher earnings, but lower revenue than First Majestic Silver.
Insider and Institutional Ownership
0.0% of Rare Element Resource shares are held by institutional investors. Comparatively, 25.7% of First Majestic Silver shares are held by institutional investors. 5.7% of Rare Element Resource shares are held by insiders. Comparatively, 0.9% of First Majestic Silver shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Rare Element Resource and First Majestic Silver’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rare Element Resource||N/A||-44.49%||-23.19%|
|First Majestic Silver||-33.27%||-5.13%||-3.49%|
This is a breakdown of current ratings and recommmendations for Rare Element Resource and First Majestic Silver, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rare Element Resource||0||0||0||0||N/A|
|First Majestic Silver||0||2||4||0||2.67|
First Majestic Silver has a consensus target price of $8.58, indicating a potential upside of 66.99%. Given First Majestic Silver’s higher probable upside, analysts plainly believe First Majestic Silver is more favorable than Rare Element Resource.
First Majestic Silver beats Rare Element Resource on 6 of the 10 factors compared between the two stocks.
Rare Element Resource Company Profile
Rare Element Resources Ltd. explores for mineral properties in the United States. The company primarily explores for gold and rare earth element (REE) deposits. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in central Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.
First Majestic Silver Company Profile
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver production in Mexico. It owns and operates six silver producing mines, including the Santa Elena Silver/Gold Mine covering an area of 101,837 hectares located in Sonora; La Encantada Silver Mine covering an area of 4,076 hectares situated in Coahuila; La Parrilla Silver Mine covering an area of 69,478 hectares located in Durango; Del Toro Silver Mine covering an area of 2,159 hectares situated in Zacatecas; San Martin Silver Mine covering an area of 38,512 hectares located in Jalisco; and La Guitarra Silver Mine that consists of 39,714 hectares situated in México State. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was founded in 1979 and is headquartered in Vancouver, Canada.
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