Head to Head Survey: McEwen Mining (NYSE:MUX) vs. Gold Resource (NYSE:GORO)

McEwen Mining (NYSE:MUXGet Rating) and Gold Resource (NYSE:GOROGet Rating) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Valuation & Earnings

This table compares McEwen Mining and Gold Resource’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McEwen Mining $136.50 million 2.14 -$56.71 million ($0.14) -4.40
Gold Resource $125.20 million 1.30 $8.03 million $0.12 15.33

Gold Resource has lower revenue, but higher earnings than McEwen Mining. McEwen Mining is trading at a lower price-to-earnings ratio than Gold Resource, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for McEwen Mining and Gold Resource, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McEwen Mining 0 0 3 0 3.00
Gold Resource 0 0 0 0 N/A

McEwen Mining presently has a consensus target price of $1.62, suggesting a potential upside of 162.45%. Given McEwen Mining’s higher probable upside, research analysts clearly believe McEwen Mining is more favorable than Gold Resource.

Institutional & Insider Ownership

23.6% of McEwen Mining shares are owned by institutional investors. Comparatively, 28.6% of Gold Resource shares are owned by institutional investors. 18.5% of McEwen Mining shares are owned by insiders. Comparatively, 1.1% of Gold Resource shares are owned 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 McEwen Mining and Gold Resource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McEwen Mining -46.05% -16.25% -12.01%
Gold Resource 6.64% 8.82% 5.74%

Volatility & Risk

McEwen Mining has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Summary

Gold Resource beats McEwen Mining on 7 of the 12 factors compared between the two stocks.

McEwen Mining Company Profile (Get Rating)

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.

Gold Resource Company Profile (Get Rating)

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 asset is the 100% owned Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was founded in 1998 and is headquartered in Denver, Colorado.

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