Head to Head Survey: Silvercorp Metals (SVMLF) versus First Majestic Silver Corp. (AG)

First Majestic Silver Corp. (NYSE: AG) and Silvercorp Metals (OTCMKTS:SVMLF) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitabiliy, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First Majestic Silver Corp. and Silvercorp Metals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Majestic Silver Corp. 0 6 1 0 2.14
Silvercorp Metals 0 0 0 0 N/A

First Majestic Silver Corp. presently has a consensus target price of $14.25, suggesting a potential upside of 85.79%. Given First Majestic Silver Corp.’s higher probable upside, analysts plainly believe First Majestic Silver Corp. is more favorable than Silvercorp Metals.

Volatility and Risk

First Majestic Silver Corp. has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Silvercorp Metals has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares First Majestic Silver Corp. and Silvercorp Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Majestic Silver Corp. 6.67% 3.20% 2.32%
Silvercorp Metals 11.70% 3.84% 3.99%

Valuation and Earnings

This table compares First Majestic Silver Corp. and Silvercorp Metals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First Majestic Silver Corp. $280.67 million 4.51 $105.85 million $0.12 63.92
Silvercorp Metals $148.83 million 3.69 $73.14 million $0.17 19.33

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

Dividends

Silvercorp Metals pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. First Majestic Silver Corp. does not pay a dividend. Silvercorp Metals pays out 5.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

27.4% of First Majestic Silver Corp. shares are owned by institutional investors. Comparatively, 0.0% of Silvercorp Metals shares are owned by institutional investors. 0.9% of First Majestic Silver Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

First Majestic Silver Corp. beats Silvercorp Metals on 9 of the 15 factors compared between the two stocks.

First Majestic Silver Corp. Company Profile

First Majestic Silver Corp. is a mining company. The Company is focused on silver production in Mexico and it is pursuing the development of its existing mineral property assets. The Company operates through eight segments, six of which are located in Mexico; one retail market segment in Canada, and one metal trading segment in Europe. Its segments in Mexico are Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra. Its segment in Canada is Coins and Bullion Sales, and the segment in Europe is Silver Sales. The Company owns and operates approximately six producing silver mines: the La Encantada Silver Mine, La Parrilla Silver Mine, Del Toro Silver Mine, San Martin Silver Mine, La Guitarra Silver Mine and Santa Elena Silver Mine. The Company’s subsidiaries include First Majestic Plata, S.A. de C.V., Minera El Pilon, S.A. de C.V., Minera La Encantada, S.A. de C.V., Majestic Services, S.A. de C.V., Santa Elena Oro y Plata, S.A. de C.V. and FMS Trading AG.

Silvercorp Metals Company Profile

Silvercorp Metals Inc. (Silvercorp) is a silver-producing Canadian mining company. The Company is engaged in the acquisition, exploration, development, and mining of silver-related mineral properties in China. The Company’s segments include Mining, including projects, such as Henan Luoning, Hunan, Guangdong and Other, and Administrative, which includes Beijing and Vancouver. The Company is the primary silver producer in China through the operation of over four silver-lead-zinc mines in the Ying Mining District in Henan Province, China, including SGX, HZG, TLP, Haopinggou (HPG) and the LM mines. The Company also has commercial production at its Gaocheng (GC) silver-lead-zinc project in Guangdong Province. Silvercorp’s principal products and source of sales are silver-bearing lead and zinc concentrates and some direct smelting ores. The Company sells all its products to local smelters or companies in the mineral products trading business.

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