Financial Analysis: Gold Reserve (OTCMKTS:GDRZF) & SilverCrest Metals (NYSE:SILV)

Gold Reserve (OTCMKTS:GDRZF) and SilverCrest Metals (NYSE:SILV) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Valuation & Earnings

This table compares Gold Reserve and SilverCrest Metals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Reserve	$2.95 million	66.14	-$23.12 million	($0.21)	-9.33
SilverCrest Metals	$245.13 million	7.03	$116.72 million	$0.57	20.26

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

Profitability

This table compares Gold Reserve and SilverCrest Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Reserve	N/A	-26.46%	-20.42%
SilverCrest Metals	30.85%	23.35%	20.98%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Gold Reserve and SilverCrest Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Reserve	0	0	0	0	0.00
SilverCrest Metals	0	2	0	0	2.00

SilverCrest Metals has a consensus target price of $9.00, suggesting a potential downside of 22.08%. Given SilverCrest Metals’ stronger consensus rating and higher probable upside, analysts plainly believe SilverCrest Metals is more favorable than Gold Reserve.

Insider & Institutional Ownership

44.8% of SilverCrest Metals shares are held by institutional investors. 12.8% of Gold Reserve shares are held by insiders. Comparatively, 4.1% of SilverCrest Metals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

SilverCrest Metals beats Gold Reserve on 10 of the 12 factors compared between the two stocks.

About Gold Reserve

Gold Reserve Inc., an exploration stage company, engages in evaluating, acquiring, exploring, and developing mineral properties. It also holds interests in LMS Gold project located in Alaska, the United States. The company was founded in 1956 and is based in Spokane, Washington.

About SilverCrest Metals

SilverCrest Metals Inc. engages in the acquiring, exploration, and development of precious metal properties in Mexico. The company primarily explores for silver and gold properties. Its focuses on principal property the Las Chispas Mine that consists of 28 concessions totaling of approximately 1,401 hectares located in Sonora, Mexico, as well as operates a portfolio of El Picacho, Cruz de Mayo, and Angel de Plata properties in Sonora Mexico. The company was incorporated in 2015 and is headquartered in Vancouver, Canada.