First Majestic Silver (NYSE:AG – Get Free Report) and Sigma Lithium (NASDAQ:SGML – Get Free Report) are both materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
27.2% of First Majestic Silver shares are held by institutional investors. Comparatively, 64.9% of Sigma Lithium shares are held by institutional investors. 0.9% of First Majestic Silver shares are held by company insiders. Comparatively, 48.6% of Sigma Lithium shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares First Majestic Silver and Sigma Lithium”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Majestic Silver | $1.65 billion | 5.24 | $164.92 million | $0.71 | 24.72 |
| Sigma Lithium | $142.49 million | 7.67 | -$50.19 million | ($0.24) | -40.46 |
First Majestic Silver has higher revenue and earnings than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than First Majestic Silver, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
First Majestic Silver has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for First Majestic Silver and Sigma Lithium, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Majestic Silver | 0 | 3 | 5 | 0 | 2.62 |
| Sigma Lithium | 3 | 3 | 2 | 0 | 1.88 |
First Majestic Silver currently has a consensus price target of $24.75, indicating a potential upside of 41.01%. Sigma Lithium has a consensus price target of $14.30, indicating a potential upside of 47.27%. Given Sigma Lithium’s higher probable upside, analysts plainly believe Sigma Lithium is more favorable than First Majestic Silver.
Profitability
This table compares First Majestic Silver and Sigma Lithium’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| First Majestic Silver | 21.18% | 13.36% | 9.20% |
| Sigma Lithium | -19.36% | -37.40% | -7.66% |
Summary
First Majestic Silver beats Sigma Lithium on 10 of the 14 factors compared between the two stocks.
About First Majestic Silver
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.
About Sigma Lithium
Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.
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