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

Profitability

This table compares McEwen Mining and Maverix Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McEwen Mining -51.03% -12.17% -9.60%
Maverix Metals -22.20% 3.30% 2.78%

Insider and Institutional Ownership

23.7% of McEwen Mining shares are owned by institutional investors. Comparatively, 5.7% of Maverix Metals shares are owned by institutional investors. 21.1% of McEwen Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for McEwen Mining and Maverix Metals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McEwen Mining 0 0 2 0 3.00
Maverix Metals 0 1 2 0 2.67

McEwen Mining currently has a consensus price target of $2.68, suggesting a potential upside of 195.42%. Maverix Metals has a consensus price target of $7.17, suggesting a potential upside of 55.54%. Given McEwen Mining’s stronger consensus rating and higher possible upside, equities research analysts plainly believe McEwen Mining is more favorable than Maverix Metals.

Earnings & Valuation

This table compares McEwen Mining and Maverix Metals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McEwen Mining $117.02 million 3.10 -$59.75 million ($0.17) -5.33
Maverix Metals $33.24 million 16.60 -$7.67 million $0.06 76.79

Maverix Metals has lower revenue, but higher earnings than McEwen Mining. McEwen Mining is trading at a lower price-to-earnings ratio than Maverix Metals, indicating that it is currently the more affordable of the two stocks.

About McEwen Mining

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.

About Maverix Metals

Maverix Metals Inc., a precious metals royalty and streaming company, engages in the exploration and development of mineral properties. The company explores for gold, silver, and other precious metals. It holds a portfolio of 46 development and exploration stage royalties in the United States, Canada, Australia, and internationally. The company was incorporated in 2016 and is headquartered in Vancouver, Canada.

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