Analyzing Endeavour Silver (NYSE:EXK) & Gold Resource (NYSE:GORO)

Endeavour Silver (NYSE:EXKGet Free Report) and Gold Resource (NYSE:GOROGet Free Report) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Endeavour Silver 2.98% 2.28% 1.83%
Gold Resource -16.39% -15.48% -8.43%

Insider and Institutional Ownership

20.1% of Endeavour Silver shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 0.8% of Endeavour Silver shares are held by insiders. Comparatively, 2.7% of Gold Resource shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Endeavour Silver and Gold Resource’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endeavour Silver $205.46 million 3.16 $6.12 million $0.02 135.00
Gold Resource $97.73 million 0.43 -$16.02 million ($0.17) -2.77

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Endeavour Silver and Gold Resource, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endeavour Silver 0 0 2 0 3.00
Gold Resource 0 0 1 0 3.00

Endeavour Silver currently has a consensus target price of $7.00, suggesting a potential upside of 159.26%. Gold Resource has a consensus target price of $1.50, suggesting a potential upside of 219.08%. Given Gold Resource’s higher possible upside, analysts clearly believe Gold Resource is more favorable than Endeavour Silver.

Volatility & Risk

Endeavour Silver has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Summary

Endeavour Silver beats Gold Resource on 11 of the 13 factors compared between the two stocks.

About Endeavour Silver

(Get Free Report)

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. 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 Gold Resource

(Get Free Report)

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 assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.

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