Critical Survey: Aris Mining (NYSE:ARIS) versus First Majestic Silver (NYSE:AG)

Aris Mining (NYSE:ARIS) and First Majestic Silver (NYSE:AG) are both mid-cap materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Aris Mining and First Majestic Silver, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	1	0	2	0	2.33
First Majestic Silver	1	2	4	0	2.43

First Majestic Silver has a consensus price target of $24.00, indicating a potential upside of 55.80%. Given First Majestic Silver’s stronger consensus rating and higher probable upside, analysts clearly believe First Majestic Silver is more favorable than Aris Mining.

Earnings and Valuation

This table compares Aris Mining and First Majestic Silver”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$927.66 million	3.51	$78.35 million	$1.38	11.43
First Majestic Silver	$1.26 billion	6.04	$164.92 million	$0.71	21.70

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

Profitability

This table compares Aris Mining and First Majestic Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aris Mining	22.43%	22.82%	13.55%
First Majestic Silver	21.18%	13.36%	9.20%

Institutional and Insider Ownership

39.7% of Aris Mining shares are held by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are held by institutional investors. 37.8% of Aris Mining shares are held by insiders. Comparatively, 0.9% of First Majestic Silver shares are held 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.

Volatility and Risk

Aris Mining has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Summary

First Majestic Silver beats Aris Mining on 8 of the 14 factors compared between the two stocks.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, Canada.

About First Majestic Silver

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.