Analyzing Platinum Group Metals (NYSE:PLG) & Gatos Silver (NYSE:GATO)

Gatos Silver (NYSE:GATO) and Platinum Group Metals (NYSE:PLG) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Gatos Silver and Platinum Group Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gatos Silver	0	2	2	1	2.80
Platinum Group Metals	0	0	0	0	N/A

Gatos Silver presently has a consensus price target of $12.90, suggesting a potential downside of 18.56%. Given Gatos Silver’s higher probable upside, equities analysts clearly believe Gatos Silver is more favorable than Platinum Group Metals.

Risk and Volatility

Gatos Silver has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Profitability

This table compares Gatos Silver and Platinum Group Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gatos Silver	N/A	7.41%	7.03%
Platinum Group Metals	N/A	-11.73%	-11.24%

Valuation and Earnings

This table compares Gatos Silver and Platinum Group Metals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gatos Silver	N/A	N/A	$12.86 million	$0.22	72.00
Platinum Group Metals	N/A	N/A	-$5.66 million	($0.07)	-21.29

Platinum Group Metals is trading at a lower price-to-earnings ratio than Gatos Silver, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

44.8% of Gatos Silver shares are owned by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are owned by institutional investors. 3.8% of Gatos Silver shares are owned by insiders. Comparatively, 0.0% of Platinum Group Metals shares are owned 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.

Summary

Gatos Silver beats Platinum Group Metals on 10 of the 10 factors compared between the two stocks.

About Gatos Silver

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.