Gold Resource (NYSE:GORO – 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, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Institutional & Insider Ownership
18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 45.2% of Skeena Resources shares are owned by institutional investors. 2.5% of Gold Resource shares are owned by insiders. Comparatively, 2.0% of Skeena Resources 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.
Profitability
This table compares Gold Resource and Skeena Resources’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Gold Resource | -61.31% | -35.25% | -16.15% |
Skeena Resources | N/A | -115.76% | -67.22% |
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Gold Resource | 0 | 0 | 1 | 0 | 3.00 |
Skeena Resources | 0 | 0 | 0 | 0 | 0.00 |
Gold Resource presently has a consensus target price of $1.25, indicating a potential upside of 131.44%. Given Gold Resource’s stronger consensus rating and higher possible upside, equities analysts clearly believe Gold Resource is more favorable than Skeena Resources.
Valuation & Earnings
This table compares Gold Resource and Skeena Resources”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Gold Resource | $73.90 million | 0.70 | -$16.02 million | ($0.49) | -1.10 |
Skeena Resources | N/A | N/A | -$80.73 million | ($1.37) | -7.36 |
Gold Resource has higher revenue and earnings than Skeena Resources. Skeena Resources is trading at a lower price-to-earnings ratio than Gold Resource, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gold Resource has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Summary
Gold Resource beats Skeena Resources on 11 of the 13 factors compared between the two stocks.
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.
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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