First Majestic Silver (NYSE:AG) and Denison Mines (NYSEAMERICAN:DNN) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for First Majestic Silver and Denison Mines, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| First Majestic Silver | 0 | 4 | 1 | 0 | 2.20 |
| Denison Mines | 0 | 2 | 1 | 0 | 2.33 |
First Majestic Silver presently has a consensus price target of $10.9375, indicating a potential downside of 33.27%. Denison Mines has a consensus price target of $1.45, indicating a potential upside of 23.93%. Given Denison Mines' stronger consensus rating and higher probable upside, analysts clearly believe Denison Mines is more favorable than First Majestic Silver.
Volatility and Risk
First Majestic Silver has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Denison Mines has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500.
Earnings and Valuation
This table compares First Majestic Silver and Denison Mines' 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 | 10.03 | $-40,470,000.00 | $0.04 | 409.50 |
| Denison Mines | $11.72 million | 80.37 | $-13,670,000.00 | ($0.02) | -58.75 |
Denison Mines has lower revenue, but higher earnings than First Majestic Silver. Denison Mines 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.
Profitability
This table compares First Majestic Silver and Denison Mines' 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% |
| Denison Mines | -103.08% | -7.12% | -5.00% |
Institutional & Insider Ownership
29.0% of First Majestic Silver shares are owned by institutional investors. Comparatively, 11.9% of Denison Mines shares are owned by institutional investors. 0.9% of First Majestic Silver shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
First Majestic Silver beats Denison Mines on 7 of the 13 factors compared between the two stocks.
