Analyzing Endeavour Silver (NYSE:EXK) and Fresnillo (OTCMKTS:FNLPF)

Endeavour Silver (NYSE:EXKGet Rating) and Fresnillo (OTCMKTS:FNLPFGet Rating) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Endeavour Silver and Fresnillo’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endeavour Silver $165.32 million 4.10 $13.95 million ($0.01) -357.00
Fresnillo $2.70 billion 3.12 $421.21 million N/A N/A

Fresnillo has higher revenue and earnings than Endeavour Silver.

Analyst Ratings

This is a breakdown of recent recommendations for Endeavour Silver and Fresnillo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endeavour Silver 0 0 2 0 3.00
Fresnillo 2 4 0 0 1.67

Endeavour Silver presently has a consensus target price of $5.75, indicating a potential upside of 61.06%. Given Endeavour Silver’s stronger consensus rating and higher possible upside, equities analysts plainly believe Endeavour Silver is more favorable than Fresnillo.

Profitability

This table compares Endeavour Silver and Fresnillo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endeavour Silver -1.26% 1.34% 1.10%
Fresnillo N/A N/A N/A

Institutional & Insider Ownership

23.6% of Endeavour Silver shares are owned by institutional investors. 0.8% of Endeavour Silver shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Endeavour Silver has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Fresnillo has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Summary

Endeavour Silver beats Fresnillo on 9 of the 12 factors compared between the two stocks.

About Endeavour Silver

(Get Rating)

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Mexico and Chile. The company explores for gold and silver deposits, and precious metals. The company operates two producing silver-gold mines in Mexico, such as the Guanaceví mine in Durango; and the Bolañitos mine in Guanajuato. It is also advancing two exploration and development projects in Mexico, including the Terronera property in Jalisco; and the Parral properties in Chihuahua. In addition, the company holds interests in three exploration projects in northern Chile comprising the Aida silver project, the Paloma gold project, and the Cerro Marquez copper-molybdenum gold project. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.

About Fresnillo

(Get Rating)

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Other. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; and San Julián silver-gold mine situated on the border of Chihuahua/Durango states. The company has mining concessions covering an area of approximately 1.7 million hectares of surface land in Mexico. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc is a subsidiary of Industrias Peñoles S.A.B. de C.V.

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