Hycroft Mining (NASDAQ:HYMC) versus Gold Resource (NYSE:GORO) Critical Review

Hycroft Mining (NASDAQ:HYMC) and Gold Resource (NYSE:GORO) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Risk and Volatility

Hycroft Mining has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Hycroft Mining and Gold Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hycroft Mining	N/A	-371.59%	-31.37%
Gold Resource	-22.30%	-19.21%	-10.17%

Earnings and Valuation

This table compares Hycroft Mining and Gold Resource’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hycroft Mining	$33.23 million	1.79	-$55.02 million	N/A	N/A
Gold Resource	$97.73 million	0.40	-$16.02 million	($0.21)	-2.06

Gold Resource has higher revenue and earnings than Hycroft Mining.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hycroft Mining and Gold Resource, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hycroft Mining	0	0	0	0	N/A
Gold Resource	0	0	1	0	3.00

Gold Resource has a consensus price target of $1.50, suggesting a potential upside of 246.42%. Given Gold Resource’s higher probable upside, analysts clearly believe Gold Resource is more favorable than Hycroft Mining.

Institutional & Insider Ownership

7.4% of Hycroft Mining shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 1.2% of Hycroft Mining shares are held by insiders. Comparatively, 2.7% of Gold Resource 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.

Summary

Gold Resource beats Hycroft Mining on 8 of the 11 factors compared between the two stocks.

About Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.

About Gold Resource

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.