Critical Review: Skeena Resources (NYSE:SKE) & First Majestic Silver (NYSE:AG)

Skeena Resources (NYSE:SKE) and First Majestic Silver (NYSE:AG) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility and Risk

Skeena Resources has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Skeena Resources and First Majestic Silver, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skeena Resources	0	0	1	0	3.00
First Majestic Silver	0	2	1	0	2.33

Skeena Resources presently has a consensus target price of $18.00, indicating a potential upside of 160.87%. First Majestic Silver has a consensus target price of $12.67, indicating a potential upside of 91.63%. Given Skeena Resources’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Skeena Resources is more favorable than First Majestic Silver.

Earnings and Valuation

This table compares Skeena Resources and First Majestic Silver’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skeena Resources	N/A	N/A	-$80.73 million	($1.02)	-6.72
First Majestic Silver	$573.80 million	3.35	-$135.11 million	($0.16)	-41.37

Skeena Resources has higher earnings, but lower revenue than First Majestic Silver. First Majestic Silver is trading at a lower price-to-earnings ratio than Skeena Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Skeena Resources and First Majestic Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skeena Resources	N/A	-87.83%	-63.67%
First Majestic Silver	-9.18%	-3.28%	-2.25%

Insider and Institutional Ownership

45.2% of Skeena Resources shares are owned by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are owned by institutional investors. 2.0% of Skeena Resources shares are owned by company insiders. Comparatively, 0.9% of First Majestic Silver shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Skeena Resources beats First Majestic Silver on 6 of the 10 factors compared between the two stocks.

About Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.

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.