MAG Silver Corp (NYSE: MAG) and McEwen Mining (NYSE:MUX) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
This table compares MAG Silver Corp and McEwen Mining’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MAG Silver Corp||N/A||-0.71%||-0.71%|
Institutional and Insider Ownership
31.8% 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares MAG Silver Corp and McEwen Mining’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MAG Silver Corp||N/A||N/A||-$6.89 million||N/A||N/A|
|McEwen Mining||$54.53 million||13.69||-$11.30 million||($0.02)||-119.50|
MAG Silver Corp has higher revenue, but lower earnings than McEwen Mining.
McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.4%. MAG Silver Corp does not pay a dividend. McEwen Mining pays out -50.0% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for MAG Silver Corp and McEwen Mining, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MAG Silver Corp||0||1||5||2||3.13|
MAG Silver Corp presently has a consensus target price of $15.33, suggesting a potential upside of 19.70%. McEwen Mining has a consensus target price of $5.00, suggesting a potential upside of 109.21%. Given McEwen Mining’s higher probable upside, analysts clearly believe McEwen Mining is more favorable than MAG Silver Corp.
MAG Silver Corp beats McEwen Mining on 7 of the 13 factors compared between the two stocks.
MAG Silver Corp Company Profile
MAG Silver Corp. is a mineral exploration and development company. The Company is focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property. Juanicipio Property is located in the Fresnillo District, Zacatecas State, Mexico. The Juanicipio Property includes silver-gold-lead-zinc epithermal vein deposit. The Company owns the mineral concessions comprising the Cinco de Mayo Property. The Cinco de Mayo Property is located approximately 190 kilometers northwest of the city of Chihuahua, in northern Chihuahua State, Mexico, and covers approximately 25,110 hectares. The Company owns the Guigui project located in the Santa Eulalia Mining District of Chihuahua, Mexico. Guigui project consists of approximately 8,300 hectares.
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.
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