First Majestic Silver (NYSE:AG – Get Free Report) and Skeena Resources (NYSE:SKE – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Profitability
This table compares First Majestic Silver and Skeena Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| First Majestic Silver | -9.18% | -3.28% | -2.25% |
| Skeena Resources | N/A | -87.83% | -63.67% |
Risk & Volatility
First Majestic Silver has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for First Majestic Silver and Skeena Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Majestic Silver | 0 | 2 | 1 | 0 | 2.33 |
| Skeena Resources | 0 | 0 | 1 | 0 | 3.00 |
First Majestic Silver currently has a consensus target price of $12.67, indicating a potential upside of 92.21%. Skeena Resources has a consensus target price of $18.00, indicating a potential upside of 163.54%. Given Skeena Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Skeena Resources is more favorable than First Majestic Silver.
Insider & Institutional Ownership
27.2% of First Majestic Silver shares are owned by institutional investors. Comparatively, 45.2% of Skeena Resources shares are owned by institutional investors. 0.9% of First Majestic Silver shares are owned by company insiders. Comparatively, 2.0% of Skeena Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares First Majestic Silver and Skeena Resources’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Majestic Silver | $573.80 million | 3.33 | -$135.11 million | ($0.16) | -41.18 |
| Skeena Resources | N/A | N/A | -$80.73 million | ($1.02) | -6.70 |
Skeena Resources has lower revenue, but higher earnings than First Majestic Silver. First Majestic Silver is trading at a lower price-to-earnings ratio than Skeena Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Skeena Resources beats First Majestic Silver on 7 of the 11 factors compared between the two stocks.
About First Majestic Silver
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. 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 incorporated in 1979 and is headquartered in Vancouver, Canada.
About Skeena Resources
Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.
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