First Majestic Silver (NYSE:AG) and Seabridge Gold (NYSE:SA) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.
Earnings & Valuation
This table compares First Majestic Silver and Seabridge Gold's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| First Majestic Silver | $363.94 million | 9.75 | $-40,470,000.00 | $0.04 | 398.75 |
| Seabridge Gold | N/A | N/A | $-8,750,000.00 | ($0.14) | -117.29 |
Seabridge Gold has lower revenue, but higher earnings than First Majestic Silver. Seabridge Gold is trading at a lower price-to-earnings ratio than First Majestic Silver, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
29.0% of First Majestic Silver shares are held by institutional investors. Comparatively, 22.7% of Seabridge Gold shares are held by institutional investors. 0.9% of First Majestic Silver shares are held by company insiders. Comparatively, 12.8% of Seabridge Gold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares First Majestic Silver and Seabridge Gold's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| First Majestic Silver | -14.98% | 1.96% | 1.26% |
| Seabridge Gold | N/A | -1.16% | -1.08% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for First Majestic Silver and Seabridge Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| First Majestic Silver | 0 | 5 | 1 | 0 | 2.17 |
| Seabridge Gold | 0 | 1 | 1 | 0 | 2.50 |
First Majestic Silver presently has a consensus target price of $9.8125, indicating a potential downside of 38.48%. Seabridge Gold has a consensus target price of $65.00, indicating a potential upside of 295.86%. Given Seabridge Gold's stronger consensus rating and higher possible upside, analysts plainly believe Seabridge Gold is more favorable than First Majestic Silver.
Risk and Volatility
First Majestic Silver has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
Summary
First Majestic Silver beats Seabridge Gold on 7 of the 12 factors compared between the two stocks.
