MAG Silver Corp (NYSE: MAG) and Seabridge Gold (NYSE:SA) are both small-cap integrated mining companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Earnings & Valuation
This table compares MAG Silver Corp and Seabridge Gold’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|MAG Silver Corp||N/A||N/A||N/A||($0.67)||-16.09|
|Seabridge Gold||N/A||N/A||-$5.50 million||($0.09)||-140.56|
Seabridge Gold is trading at a lower price-to-earnings ratio than MAG Silver Corp, indicating that it is currently the more affordable of the two stocks.
This table compares MAG Silver Corp and Seabridge Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MAG Silver Corp||N/A||-3.01%||-3.00%|
Institutional & Insider Ownership
26.1% of Seabridge Gold shares are owned by institutional investors. 12.8% of Seabridge Gold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for MAG Silver Corp and Seabridge Gold, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MAG Silver Corp||0||0||5||2||3.29|
MAG Silver Corp presently has a consensus target price of $17.63, suggesting a potential upside of 63.50%. Given MAG Silver Corp’s higher probable upside, equities analysts clearly believe MAG Silver Corp is more favorable than Seabridge Gold.
Risk & Volatility
MAG Silver Corp has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500.
Seabridge Gold beats MAG Silver Corp on 5 of the 9 factors compared between the two stocks.
About MAG Silver Corp
MAG Silver Corp. is a mineral exploration and development company. The Company is focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property. Juanicipio Property is located in the Fresnillo District, Zacatecas State, Mexico. The Juanicipio Property includes silver-gold-lead-zinc epithermal vein deposit. The Company owns the mineral concessions comprising the Cinco de Mayo Property. The Cinco de Mayo Property is located approximately 190 kilometers northwest of the city of Chihuahua, in northern Chihuahua State, Mexico, and covers approximately 25,110 hectares. The Company owns the Guigui project located in the Santa Eulalia Mining District of Chihuahua, Mexico. Guigui project consists of approximately 8,300 hectares.
About Seabridge Gold
Seabridge Gold Inc. (Seabridge) is a development-stage company. The Company is engaged in the acquisition and exploration of gold properties located in North America. As of December 31, 2016, the Company owned six properties with gold resources. Its material properties are its Kerr-Sulphurets-Mitchell (KSM) Project and its Courageous Lake Project. Its KSM Project is located within the Iskut-Stikine region of British Columbia, approximately 21 kilometers south-southeast of the former Eskay Creek Mine and approximately 65 kilometers north-northwest of Stewart, British Columbia. As of December 31, 2016, the KSM property consisted of three discontinuous claim blocks. These claim blocks are referred to as the KSM claim group; the Seabee/Tina claims, and the KSM placer claim block. As of December 31, 2016, the two claim blocks (KSM and Seabee/Tina) contained two mineral leases and 73 mineral claims, consisting of both cell and legacy claims.
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