Fortuna Silver Mines (NYSE: FSM) and Eldorado Gold (NYSE:EGO) are both small-cap basic materials companies, but which is the superior stock?

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Editorial Staff Wcryptn

Date: 02.08.2018

We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Fortuna Silver Mines and Eldorado Gold’s gross revenue, earnings per share (EPS) and valuation.

 

Gross Revenue

Price/Sales Ratio

Net Income

Earnings Per Share

Price/Earnings Ratio

Fortuna Silver Mines

$268.11 million

3.21

$66.30 million

$0.31

17.35

Eldorado Gold

$391.41 million

2.07

-$9.93 million

$0.02

51.00

 

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

Volatility & Risk

Fortuna Silver Mines has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500. Comparatively, Eldorado Gold has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Fortuna Silver Mines and Eldorado Gold, as reported by MarketBeat.com.

 

Sell Ratings

Hold Ratings

Buy Ratings

Strong Buy Ratings

Rating Score

Fortuna Silver Mines

0

1

3

0

2.75

Eldorado Gold

3

5

1

0

1.78

Fortuna Silver Mines currently has a consensus price target of $6.00, indicating a potential upside of 11.52%. Eldorado Gold has a consensus price target of $1.20, indicating a potential upside of 17.65%. Given Eldorado Gold’s higher possible upside, analysts plainly believe Eldorado Gold is more favorable than Fortuna Silver Mines.

Insider & Institutional Ownership

41.0% of Fortuna Silver Mines shares are held by institutional investors. Comparatively, 40.8% of Eldorado Gold shares are held by institutional investors. 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.

Profitability

This table compares Fortuna Silver Mines and Eldorado Gold’s net margins, return on equity and return on assets.

 

Net Margins

Return on Equity

Return on Assets

Fortuna Silver Mines

24.53%

8.71%

7.04%

Eldorado Gold

-8.42%

0.35%

0.26%

 

Summary

Fortuna Silver Mines beats Eldorado Gold on 9 of the 13 factors compared between the two stocks.

Fortuna Silver Mines Company Profile

 

Fortuna Silver Mines Inc. engages in the exploration, extraction, and processing of precious and base metal deposits in Latin America. It explores for silver, gold, lead, and zinc deposits. The company holds interests in the Caylloma mine located in southern Peru; and the San Jose mine situated in the state of Oaxaca in southern Mexico. It also develops the Lindero gold project located in northern Argentina. The company was formerly known as Fortuna Ventures Inc. and changed its name to Fortuna Silver Mines Inc. in June 2005. Fortuna Silver Mines Inc. was incorporated in 1990 and is based in Vancouver, Canada.

 

Eldorado Gold Company Profile

 

Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, and mining of gold properties in Turkey, Greece, Brazil, Serbia, Canada, and Romania. The company holds 100% interests in the Kisladag and Efemcukuru gold mines in Turkey; Lamaque gold project in Canada; Perama Hill gold-silver project and Sapes in Greece; and Vila Nova iron ore mine and Tocantinzinho gold project in Brazil. It also holds 95% interests in Olympias gold mine, Stratoni silver-lead-zinc mine, and Skouries gold-copper project in Greece; and 80.5% interests in Certej gold-silver project in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was founded in 1992 and is headquartered in Vancouver, Canada.

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