Head-To-Head Review: Gold Resource (NYSE:GORO) & Santacruz Silver Mining (OTCMKTS:SCZMF)

Santacruz Silver Mining (OTCMKTS:SCZMF) and Gold Resource (NYSE:GORO) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Santacruz Silver Mining	N/A	N/A	N/A
Gold Resource	-61.31%	-35.25%	-16.15%

Analyst Ratings

This is a breakdown of recent ratings for Santacruz Silver Mining and Gold Resource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Santacruz Silver Mining	0	0	0	0	0.00
Gold Resource	0	0	1	0	3.00

Gold Resource has a consensus price target of $1.50, indicating a potential upside of 75.03%. Given Gold Resource’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Resource is more favorable than Santacruz Silver Mining.

Valuation and Earnings

This table compares Santacruz Silver Mining and Gold Resource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Santacruz Silver Mining	N/A	N/A	N/A	N/A	N/A
Gold Resource	$61.43 million	2.26	-$16.02 million	($0.34)	-2.52

Santacruz Silver Mining has higher earnings, but lower revenue than Gold Resource.

Institutional and Insider Ownership

18.4% of Gold Resource shares are owned by institutional investors. 1.3% of Gold Resource shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Gold Resource beats Santacruz Silver Mining on 6 of the 9 factors compared between the two stocks.

About Gold Resource

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