Analyzing Entrée Resources (OTCMKTS:ERLFF) and Gatos Silver (NYSE:GATO)

Entrée Resources (OTCMKTS:ERLFFGet Free Report) and Gatos Silver (NYSE:GATOGet Free Report) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Entrée Resources and Gatos Silver, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entrée Resources 0 0 0 0 N/A
Gatos Silver 0 2 3 1 2.83

Gatos Silver has a consensus price target of $11.40, indicating a potential upside of 5.75%. Given Gatos Silver’s higher probable upside, analysts plainly believe Gatos Silver is more favorable than Entrée Resources.

Institutional and Insider Ownership

44.8% of Gatos Silver shares are owned by institutional investors. 3.4% of Entrée Resources shares are owned by company insiders. Comparatively, 3.8% of Gatos Silver shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Entrée Resources and Gatos Silver’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entrée Resources N/A N/A -145.18%
Gatos Silver N/A 4.05% 3.77%

Volatility and Risk

Entrée Resources has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500.

Valuation and Earnings

This table compares Entrée Resources and Gatos Silver’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entrée Resources N/A N/A -$9.58 million ($0.05) -20.80
Gatos Silver N/A N/A $12.86 million $0.22 49.00

Entrée Resources is trading at a lower price-to-earnings ratio than Gatos Silver, indicating that it is currently the more affordable of the two stocks.

Summary

Gatos Silver beats Entrée Resources on 11 of the 11 factors compared between the two stocks.

About Entrée Resources

(Get Free Report)

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.

About Gatos Silver

(Get Free Report)

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

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