Silver Standard Resources (NASDAQ: SSRM) and Pan American Silver Corp. (NASDAQ:PAAS) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
This is a breakdown of recent ratings and price targets for Silver Standard Resources and Pan American Silver Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silver Standard Resources||0||3||3||0||2.50|
|Pan American Silver Corp.||0||5||4||0||2.44|
Silver Standard Resources presently has a consensus price target of $14.00, indicating a potential upside of 41.56%. Pan American Silver Corp. has a consensus price target of $21.00, indicating a potential upside of 19.86%. Given Silver Standard Resources’ stronger consensus rating and higher probable upside, research analysts clearly believe Silver Standard Resources is more favorable than Pan American Silver Corp..
Earnings and Valuation
This table compares Silver Standard Resources and Pan American Silver Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silver Standard Resources||N/A||N/A||N/A||$0.86||11.50|
|Pan American Silver Corp.||$824.25 million||3.26||$301.23 million||$0.78||22.46|
Pan American Silver Corp. has higher revenue and earnings than Silver Standard Resources. Silver Standard Resources is trading at a lower price-to-earnings ratio than Pan American Silver Corp., indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Silver Standard Resources has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, Pan American Silver Corp. has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.
Insider and Institutional Ownership
47.0% of Silver Standard Resources shares are held by institutional investors. Comparatively, 49.9% of Pan American Silver Corp. shares are held by institutional investors. 12.9% of Pan American Silver Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Silver Standard Resources and Pan American Silver Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silver Standard Resources||20.37%||10.69%||6.84%|
|Pan American Silver Corp.||14.62%||6.16%||4.60%|
Pan American Silver Corp. pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Silver Standard Resources does not pay a dividend. Pan American Silver Corp. pays out 12.8% of its earnings in the form of a dividend.
About Silver Standard Resources
SSR Mining Inc, formerly Silver Standard Resources Inc, is a Canada-based resource company. The Company is engaged in the operation, acquisition, exploration and development of precious metal resource properties located in the Americas. The Company’s segments include Pirquitas mine, Marigold mine, Seabee Gold Operation, and Exploration and evaluation properties. The Company has three producing mines and a portfolio of silver resource dominant projects located throughout the Americas. The Company is focused on silver production from the Pirquitas mine in Argentina and gold production from the Marigold mine in Nevada, the United States. The Company’s other projects include Seabee Gold Operation in Saskatchewan, Canada and Pirquitas mine in Jujuy, Argentina. The Marigold mine produced approximately 205,116 ounces of gold. The Seabee Gold Operation produced approximately 77,640 ounces of gold. The Pirquitas mine produced approximately 10.4 million ounces of silver.
About Pan American Silver Corp.
Pan American Silver Corp. is a silver production company. The Company is principally engaged in the operation and development of, and exploration for, silver producing properties. The Company’s segments include Peru, Mexico, Argentina and Bolivia. The Company also produces and sells gold, zinc, lead and copper. The Company’s operating properties in Mexico include La Colorada Mine, Dolores and Alamo Dorado. The Company’s operating properties in Peru include Huaron Mine and Morococha Mine. The Company’s operating properties in Bolivia include San Vicente. The Company’s operating properties in Argentina include Manantial Espejo. The Company’s development properties include Navidad Property. The La Colorada underground silver mine is located in the Chalchihuites district in Zacatecas State, Mexico, approximately 99 kilometers south of Durango and 156 kilometers northwest of Zacatecas. The La Colorada consists of approximately 60 claims totaling approximately 8,400 hectares.
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