Contrasting Platinum Group Metals (NYSE:PLG) & Gatos Silver (NYSE:GATO)

Platinum Group Metals (NYSE:PLG) and Gatos Silver (NYSE:GATO) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares Platinum Group Metals and Gatos Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Platinum Group Metals	N/A	-11.73%	-11.24%
Gatos Silver	N/A	7.41%	7.03%

Analyst Ratings

This is a summary of current ratings and target prices for Platinum Group Metals and Gatos Silver, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Platinum Group Metals	0	0	0	0	N/A
Gatos Silver	0	2	2	1	2.80

Gatos Silver has a consensus price target of $12.90, indicating a potential downside of 18.92%. Given Gatos Silver’s higher probable upside, analysts plainly believe Gatos Silver is more favorable than Platinum Group Metals.

Insider & Institutional Ownership

16.3% of Platinum Group Metals shares are held by institutional investors. Comparatively, 44.8% of Gatos Silver shares are held by institutional investors. 0.0% of Platinum Group Metals shares are held by insiders. Comparatively, 3.8% of Gatos Silver shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Platinum Group Metals and Gatos Silver”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Platinum Group Metals	N/A	N/A	-$5.66 million	($0.07)	-22.29
Gatos Silver	N/A	N/A	$12.86 million	$0.22	72.32

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

Risk and Volatility

Platinum Group Metals has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Summary

Gatos Silver beats Platinum Group Metals on 11 of the 11 factors compared between the two stocks.

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.

About Gatos Silver

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.