Financial Survey: Gold Fields (NYSE:GFI) vs. SilverCrest Metals (NYSE:SILV)

SilverCrest Metals (NYSE:SILV) and Gold Fields (NYSE:GFI) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Valuation and Earnings

This table compares SilverCrest Metals and Gold Fields”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverCrest Metals	$245.13 million	7.03	$116.72 million	$0.57	20.26
Gold Fields	$5.20 billion	3.64	$703.30 million	$2.35	9.01

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

Insider and Institutional Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 24.8% of Gold Fields shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by insiders. Comparatively, 36.8% of Gold Fields shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SilverCrest Metals	30.85%	23.35%	20.98%
Gold Fields	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for SilverCrest Metals and Gold Fields, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	2	1	0	2.33
Gold Fields	0	5	2	0	2.29

SilverCrest Metals currently has a consensus target price of $10.13, indicating a potential downside of 12.34%. Gold Fields has a consensus target price of $18.56, indicating a potential downside of 12.37%. Given SilverCrest Metals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe SilverCrest Metals is more favorable than Gold Fields.

Risk & Volatility

SilverCrest Metals has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Gold Fields has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Summary

SilverCrest Metals beats Gold Fields on 9 of the 14 factors compared between the two stocks.

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.

About Gold Fields

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. It also explores for copper and silver deposits. The company was founded in 1887 and is based in Sandton, South Africa.