Silvercorp Metals (OTCMKTS: SVMLF) and Endeavour Silver Corporation (NYSE:EXK) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares Silvercorp Metals and Endeavour Silver Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silvercorp Metals 11.70% 3.84% 3.99%
Endeavour Silver Corporation 4.58% 4.68% 3.54%

Dividends

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

Institutional and Insider Ownership

0.0% of Silvercorp Metals shares are owned by institutional investors. Comparatively, 31.7% of Endeavour Silver Corporation shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Silvercorp Metals has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Endeavour Silver Corporation has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500.

Earnings and Valuation

This table compares Silvercorp Metals and Endeavour Silver Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Silvercorp Metals $148.83 million 3.69 $73.14 million $0.17 19.33
Endeavour Silver Corporation $139.79 million 2.02 $22.30 million $0.05 44.40

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

Analyst Ratings

This is a summary of recent ratings for Silvercorp Metals and Endeavour Silver Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silvercorp Metals 0 0 0 0 N/A
Endeavour Silver Corporation 1 4 4 0 2.33

Endeavour Silver Corporation has a consensus price target of $6.13, indicating a potential upside of 175.90%. Given Endeavour Silver Corporation’s higher possible upside, analysts clearly believe Endeavour Silver Corporation is more favorable than Silvercorp Metals.

Summary

Silvercorp Metals beats Endeavour Silver Corporation on 8 of the 14 factors compared between the two stocks.

About Silvercorp Metals

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.

About Endeavour Silver Corporation

Endeavour Silver Corp. is engaged in silver mining in Mexico, and related activities, including property acquisition, exploration, development, mineral extraction, processing, refining and reclamation. The Company is engaged in exploration activities in Chile. The Company’s operating mining segments include Guanacevi, Bolanitos and El Cubo, which are located in Mexico, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile. The Company produces silver-gold from its underground mines at Guanacevi, Bolanitos and El Cubo in Mexico. Its exploration projects include Guadalupe y Calvo, Parral Mine, Terronera and Lourdes. The Company conducts its business primarily in Mexico through its subsidiary companies, such as Endeavour Gold Corporation, S.A. de C.V., Minera Plata Adelante, S.A. de C.V., Refinadora Plata Guanacevi, S.A. de C.V., Minas Lupycal S.A. de C.V. and MXRT Holdings Inc.

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