Galiano Gold (NYSEMKT:GAU) and U.S. Silica (NYSE:SLCA) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Insider & Institutional Ownership
39.6% of Galiano Gold shares are held by institutional investors. Comparatively, 75.7% of U.S. Silica shares are held by institutional investors. 1.9% of U.S. Silica shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Galiano Gold and U.S. Silica's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Galiano Gold | N/A | 24.67% | 24.16% |
| U.S. Silica | -42.97% | -0.69% | -0.19% |
Analyst Ratings
This is a summary of current recommendations and price targets for Galiano Gold and U.S. Silica, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Galiano Gold | 0 | 2 | 3 | 0 | 2.60 |
| U.S. Silica | 1 | 3 | 3 | 0 | 2.29 |
Galiano Gold presently has a consensus target price of $2.4333, suggesting a potential upside of ∞. U.S. Silica has a consensus target price of $7.50, suggesting a potential downside of 35.62%. Given Galiano Gold's stronger consensus rating and higher probable upside, analysts plainly believe Galiano Gold is more favorable than U.S. Silica.
Valuation & Earnings
This table compares Galiano Gold and U.S. Silica's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Galiano Gold | $161.92 million | 0.00 | $-167,930,000.00 | $0.01 | N/A |
| U.S. Silica | $1.47 billion | 0.59 | $-329,080,000.00 | ($0.64) | -18.20 |
Galiano Gold has higher earnings, but lower revenue than U.S. Silica. U.S. Silica is trading at a lower price-to-earnings ratio than Galiano Gold, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Galiano Gold has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, U.S. Silica has a beta of 3.22, suggesting that its stock price is 222% more volatile than the S&P 500.
Summary
Galiano Gold beats U.S. Silica on 8 of the 12 factors compared between the two stocks.
