Critical Review: Silver Standard Resources (NASDAQ:SSRM) versus Ivanhoe Mines (OTCMKTS:IVPAF)

Ivanhoe Mines (OTCMKTS:IVPAF) and Silver Standard Resources (NASDAQ:SSRM) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Ivanhoe Mines and Silver Standard Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ivanhoe Mines	89.02%	5.99%	4.62%
Silver Standard Resources	15.36%	6.46%	4.64%

Institutional and Insider Ownership

68.3% of Silver Standard Resources shares are held by institutional investors. 0.7% of Silver Standard Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Ivanhoe Mines and Silver Standard Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ivanhoe Mines	$40.82 million	397.61	$228.13 million	$0.22	51.86
Silver Standard Resources	$995.62 million	4.46	-$261.28 million	$1.04	21.03

Ivanhoe Mines has higher earnings, but lower revenue than Silver Standard Resources. Silver Standard Resources is trading at a lower price-to-earnings ratio than Ivanhoe Mines, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Ivanhoe Mines and Silver Standard Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ivanhoe Mines	0	1	4	3	3.25
Silver Standard Resources	1	5	2	2	2.50

Ivanhoe Mines currently has a consensus target price of $15.20, suggesting a potential upside of 33.22%. Silver Standard Resources has a consensus target price of $20.00, suggesting a potential downside of 8.55%. Given Ivanhoe Mines’ stronger consensus rating and higher possible upside, equities analysts clearly believe Ivanhoe Mines is more favorable than Silver Standard Resources.

Summary

Ivanhoe Mines beats Silver Standard Resources on 8 of the 14 factors compared between the two stocks.

About Ivanhoe Mines

Ivanhoe Mines Ltd. engages in the mining, development, and exploration of minerals and precious metals primarily in Africa. It explores for platinum, palladium, nickel, copper, gold, rhodium, zinc, silver, germanium, and lead deposits. The company's projects include the Platreef project located in the Northern Limb of South Africa's Bushveld Complex; the Kipushi project located in Haut-Katanga Province, Democratic Republic of Congo; and the Kamoa-Kakula project located within the Central African Copperbelt. It also holds a 100% interest in the Western Foreland exploration project covering an area of approximately 2,407 square kilometers located in the Democratic Republic of Congo. The company was formerly known as Ivanplats Limited and changed its name to Ivanhoe Mines Ltd. in August 2013. The company was incorporated in 1993 and is based in Vancouver, Canada.

About Silver Standard Resources

SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.