Financial Comparison: Gold Resource (NYSE:GORO) & Endeavour Silver (NYSE:EXK)

Gold Resource (NYSE:GOROGet Free Report) and Endeavour Silver (NYSE:EXKGet Free Report) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Insider & Institutional Ownership

18.4% of Gold Resource shares are owned by institutional investors. Comparatively, 20.1% of Endeavour Silver shares are owned by institutional investors. 2.7% of Gold Resource shares are owned by insiders. Comparatively, 0.8% of Endeavour Silver shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Gold Resource and Endeavour Silver’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gold Resource $97.73 million 0.46 -$16.02 million ($0.17) -2.95
Endeavour Silver $205.46 million 2.98 $6.12 million $0.02 127.56

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gold Resource and Endeavour Silver, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Resource 0 0 1 0 3.00
Endeavour Silver 0 0 2 0 3.00

Gold Resource currently has a consensus price target of $1.50, indicating a potential upside of 199.28%. Endeavour Silver has a consensus price target of $7.00, indicating a potential upside of 174.51%. Given Gold Resource’s higher probable upside, research analysts clearly believe Gold Resource is more favorable than Endeavour Silver.

Profitability

This table compares Gold Resource and Endeavour Silver’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gold Resource -16.39% -15.48% -8.43%
Endeavour Silver 2.98% 2.28% 1.83%

Volatility & Risk

Gold Resource has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Endeavour Silver has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Summary

Endeavour Silver beats Gold Resource on 10 of the 12 factors compared between the two stocks.

About Gold Resource

(Get Free Report)

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company explores for copper, lead, and zinc deposits. Its principal asset is the 100% owned Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. Gold Resource Corporation was founded in 1998 and is headquartered in Denver, Colorado.

About Endeavour Silver

(Get Free Report)

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.

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