Comparing Gold Resource (NYSE:GORO) & Aris Mining (NYSE:ARMN)

Aris Mining (NYSE:ARMN) and Gold Resource (NYSE:GORO) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Aris Mining and Gold Resource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	0	0	0	0	N/A
Gold Resource	0	0	1	0	3.00

Gold Resource has a consensus price target of $1.50, indicating a potential upside of 274.34%. Given Gold Resource’s higher possible upside, analysts plainly believe Gold Resource is more favorable than Aris Mining.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aris Mining	3.06%	7.64%	3.56%
Gold Resource	-22.30%	-19.21%	-10.17%

Valuation & Earnings

This table compares Aris Mining and Gold Resource’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$447.67 million	1.52	$11.42 million	$0.05	80.60
Gold Resource	$97.73 million	0.37	-$16.02 million	($0.21)	-1.91

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

Institutional and Insider Ownership

35.8% of Aris Mining shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 2.7% of Gold Resource shares are held by insiders. 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.

Summary

Aris Mining beats Gold Resource on 9 of the 12 factors compared between the two stocks.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based 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 also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.