Seabridge Gold (NYSE:SA) and McEwen Mining (NYSE:MUX) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Earnings & Valuation
This table compares Seabridge Gold and McEwen Mining's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Seabridge Gold | N/A | N/A | $-8,750,000.00 | ($0.14) | -124.57 |
McEwen Mining | $117.02 million | 4.14 | $-59,750,000.00 | ($0.17) | -6.65 |
Seabridge Gold has higher earnings, but lower revenue than McEwen Mining. Seabridge Gold is trading at a lower price-to-earnings ratio than McEwen Mining, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
22.7% of Seabridge Gold shares are owned by institutional investors. Comparatively, 16.0% of McEwen Mining shares are owned by institutional investors. 12.8% of Seabridge Gold shares are owned by company insiders. Comparatively, 21.1% of McEwen Mining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Seabridge Gold and McEwen Mining, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Seabridge Gold | 0 | 1 | 1 | 0 | 2.50 |
McEwen Mining | 0 | 0 | 3 | 0 | 3.00 |
Seabridge Gold currently has a consensus price target of $65.00, suggesting a potential upside of 272.71%. McEwen Mining has a consensus price target of $2.8333, suggesting a potential upside of 150.74%. Given Seabridge Gold's higher probable upside, equities research analysts plainly believe Seabridge Gold is more favorable than McEwen Mining.
Volatility & Risk
Seabridge Gold has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, McEwen Mining has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Profitability
This table compares Seabridge Gold and McEwen Mining's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Seabridge Gold | N/A | -1.16% | -1.08% |
McEwen Mining | -140.63% | -16.86% | -12.95% |
Summary
Seabridge Gold beats McEwen Mining on 7 of the 13 factors compared between the two stocks.