Fortuna Silver Mines (NYSE:FSM – Get Rating) and B2Gold (NYSE:BTG – Get Rating) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Fortuna Silver Mines has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, B2Gold has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Insider & Institutional Ownership
26.8% of Fortuna Silver Mines shares are owned by institutional investors. Comparatively, 52.2% of B2Gold shares are owned by institutional investors. 1.0% of Fortuna Silver Mines shares are owned by insiders. Comparatively, 1.2% of B2Gold 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.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Fortuna Silver Mines | 0 | 0 | 1 | 0 | 3.00 |
B2Gold | 0 | 0 | 0 | 0 | N/A |
Fortuna Silver Mines currently has a consensus target price of $6.00, suggesting a potential upside of 73.91%. Given Fortuna Silver Mines’ higher possible upside, equities research analysts plainly believe Fortuna Silver Mines is more favorable than B2Gold.
Profitability
This table compares Fortuna Silver Mines and B2Gold’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Fortuna Silver Mines | 5.76% | 4.63% | 3.27% |
B2Gold | 14.60% | 8.71% | 7.35% |
Valuation and Earnings
This table compares Fortuna Silver Mines and B2Gold’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Fortuna Silver Mines | $599.85 million | 1.67 | $59.40 million | $0.14 | 24.64 |
B2Gold | $1.73 billion | 2.27 | $252.87 million | $0.25 | 14.64 |
B2Gold has higher revenue and earnings than Fortuna Silver Mines. B2Gold is trading at a lower price-to-earnings ratio than Fortuna Silver Mines, indicating that it is currently the more affordable of the two stocks.
Summary
B2Gold beats Fortuna Silver Mines on 9 of the 13 factors compared between the two stocks.
About Fortuna Silver Mines
Fortuna Silver Mines, Inc. engages in the exploration, extraction and processing of precious and base metal in Latin America. It operates through the following segments: Minera Bateas S.A.C (Bateas), Compania Minera Cuzcatlan S.A. de C.V. (Cuzcatian), Mansfield Minera S.A. (Mansfield), and Corporate. The Beates segment operates the Caylloma silver, lead, and zinc mine. The Cuzcatlan segment handles the San Jose silver-gold mine. The Mansfield segment constructs the Lindero mine. The Corporate segment represents the corporate stewardship. The company was founded by Jorge Alberto Ganoza Durant, Simon T. P. Ridgway, and Mario David Szotlender on September 4, 1990 and is headquartered in Vancouver, Canada.
About B2Gold
B2Gold Corp. is an exploration company, which engages in the acquisition and development of mineral properties. It operates through the following segments: Fekola Mine, Otjikoto Mine, Masbate Mine, Libertad Mine, and Limon Mine. The company was founded by Mark Anthony Corra, Thomas A. Garagan, Clive Thomas Johnson and Roger Thomas Richer on November 30, 2006 and is headquartered in Vancouver, Canada.
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