McEwen Mining (NYSE: MUX) and Gold Resource (NASDAQ:GORO) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Insider and Institutional Ownership

27.7% of McEwen Mining shares are held by institutional investors. 26.6% of McEwen Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares McEwen Mining and Gold Resource’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
McEwen Mining $54.53 million 11.17 -$11.30 million ($0.02) -97.50
Gold Resource $85.35 million 2.50 $20.77 million N/A N/A

Gold Resource has higher revenue and earnings than McEwen Mining.

Dividends

McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Gold Resource does not pay a dividend. McEwen Mining pays out -50.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for McEwen Mining and Gold Resource, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McEwen Mining 0 0 1 0 3.00
Gold Resource 0 0 0 0 N/A

McEwen Mining currently has a consensus price target of $5.00, indicating a potential upside of 156.41%. Given McEwen Mining’s higher possible upside, analysts clearly believe McEwen Mining is more favorable than Gold Resource.

Profitability

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

Net Margins Return on Equity Return on Assets
McEwen Mining -9.19% -1.69% -1.51%
Gold Resource 4.04% 3.08% 2.71%

Summary

McEwen Mining beats Gold Resource on 7 of the 12 factors compared between the two stocks.

McEwen Mining Company Profile

McEwen Mining Inc. is a mining and minerals production and exploration company. The Company is focused on precious and base metals in Argentina, Mexico and the United States. The Company’s segments include Mexico, Minera Santa Cruz S.A. (MSC), Nevada and Los Azules. The Mexico Operations segment includes properties, such as El Gallo 1 mine and the El Gallo 2 project. The MSC segment includes properties, such as the San Jose mine and other concessions located around the mine. The Company’s properties in Nevada segment include Gold Bar project and exploration properties. The Gold Bar project is a proposed mine project. The Los Azules segment includes various properties, such as Los Azules project, Chonchones project, Laganoso project, La Cerrada project and Other Argentina properties. The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile.

Gold Resource Company Profile

Gold Resource Corporation is a mining company. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and dore containing gold and silver at the Aguila Project within its Oaxaca Mining Unit located in the southern state of Oaxaca, Mexico. The Company has two units in North America, the Oaxaca Mining Unit and the Nevada Mining Unit. The Company’s mineral properties are classified into two categories, such as Operating Properties and Exploration Properties. As of December 31, 2016, the Company had interest in nine properties, where over six of its properties, including one Operating Property and five Exploration Properties, are within its Oaxaca Mining Unit, which is located in the southern state of Oaxaca, Mexico. As of December 31, 2016, the Company also had three Exploration Properties within its Nevada Mining Unit located in south central Nevada’s Walker Lane Mineral Belt in the United States.

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