Seabridge Gold (NYSE: SA) and A-Mark Precious Metals (NASDAQ:AMRK) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Institutional and Insider Ownership

25.9% of Seabridge Gold shares are owned by institutional investors. Comparatively, 19.9% of A-Mark Precious Metals shares are owned by institutional investors. 12.8% of Seabridge Gold shares are owned by insiders. Comparatively, 43.0% of A-Mark Precious Metals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Seabridge Gold and A-Mark Precious Metals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seabridge Gold N/A N/A -$9.54 million ($0.08) -160.00
A-Mark Precious Metals $6.99 billion 0.02 $10.39 million $0.99 16.95

A-Mark Precious Metals has higher revenue and earnings than Seabridge Gold. Seabridge Gold is trading at a lower price-to-earnings ratio than A-Mark Precious Metals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Seabridge Gold and A-Mark Precious Metals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seabridge Gold 0 0 0 0 N/A
A-Mark Precious Metals 0 1 1 1 3.00

A-Mark Precious Metals has a consensus target price of $21.65, indicating a potential upside of 29.02%. Given A-Mark Precious Metals’ higher possible upside, analysts plainly believe A-Mark Precious Metals is more favorable than Seabridge Gold.

Profitability

This table compares Seabridge Gold and A-Mark Precious Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seabridge Gold N/A -1.98% -1.83%
A-Mark Precious Metals 0.08% 7.08% 0.87%

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Seabridge Gold does not pay a dividend. A-Mark Precious Metals pays out 32.3% of its earnings in the form of a dividend.

Risk & Volatility

Seabridge Gold has a beta of -0.25, suggesting that its share price is 125% less volatile than the S&P 500. Comparatively, A-Mark Precious Metals has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Summary

A-Mark Precious Metals beats Seabridge Gold on 12 of the 14 factors compared between the two stocks.

About Seabridge Gold

Seabridge Gold Inc. (Seabridge) is a development-stage company. The Company is engaged in the acquisition and exploration of gold properties located in North America. As of December 31, 2016, the Company owned six properties with gold resources. Its material properties are its Kerr-Sulphurets-Mitchell (KSM) Project and its Courageous Lake Project. Its KSM Project is located within the Iskut-Stikine region of British Columbia, approximately 21 kilometers south-southeast of the former Eskay Creek Mine and approximately 65 kilometers north-northwest of Stewart, British Columbia. As of December 31, 2016, the KSM property consisted of three discontinuous claim blocks. These claim blocks are referred to as the KSM claim group; the Seabee/Tina claims, and the KSM placer claim block. As of December 31, 2016, the two claim blocks (KSM and Seabee/Tina) contained two mineral leases and 73 mineral claims, consisting of both cell and legacy claims.

About A-Mark Precious Metals

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

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