SilverCrest Metals (NYSE:SILV – Get Free Report) and New Found Gold (NYSE:NFGC – Get Free Report) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
44.8% of SilverCrest Metals shares are held by institutional investors. Comparatively, 3.4% of New Found Gold shares are held by institutional investors. 4.1% of SilverCrest Metals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares SilverCrest Metals and New Found Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SilverCrest Metals | 30.85% | 23.35% | 20.98% |
| New Found Gold | N/A | -82.80% | -68.88% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SilverCrest Metals | 0 | 2 | 1 | 0 | 2.33 |
| New Found Gold | 0 | 0 | 1 | 0 | 3.00 |
SilverCrest Metals presently has a consensus target price of $10.13, indicating a potential upside of 9.82%. New Found Gold has a consensus target price of $9.00, indicating a potential upside of 462.50%. Given New Found Gold’s stronger consensus rating and higher probable upside, analysts clearly believe New Found Gold is more favorable than SilverCrest Metals.
Risk & Volatility
SilverCrest Metals has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, New Found Gold has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Earnings and Valuation
This table compares SilverCrest Metals and New Found Gold”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SilverCrest Metals | $278.08 million | 4.93 | $116.72 million | $0.57 | 16.18 |
| New Found Gold | N/A | N/A | -$59.18 million | ($0.22) | -7.27 |
SilverCrest Metals has higher revenue and earnings than New Found Gold. New Found Gold is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.
Summary
SilverCrest Metals beats New Found Gold on 10 of the 12 factors compared between the two stocks.
About SilverCrest Metals
SilverCrest Metals Inc. engages in the acquiring, exploration, and development of precious metal properties in Mexico. The company primarily explores for silver and gold properties. Its focuses on principal property the Las Chispas Mine that consists of 28 concessions totaling of approximately 1,401 hectares located in Sonora, Mexico, as well as operates a portfolio of El Picacho, Cruz de Mayo, and Angel de Plata properties in Sonora Mexico. The company was incorporated in 2015 and is headquartered in Vancouver, Canada.
About New Found Gold
New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. 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.
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