Critical Comparison: Amerigo Resources (OTCMKTS:ARREF) & Great Panther Mining (NYSE:GPL)

Amerigo Resources (OTCMKTS:ARREFGet Rating) and Great Panther Mining (NYSE:GPLGet Rating) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Amerigo Resources and Great Panther Mining, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amerigo Resources 0 0 0 0 N/A
Great Panther Mining 0 0 1 0 3.00

Great Panther Mining has a consensus target price of $1.75, indicating a potential upside of ∞. Given Great Panther Mining’s higher probable upside, analysts clearly believe Great Panther Mining is more favorable than Amerigo Resources.

Profitability

This table compares Amerigo Resources and Great Panther Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amerigo Resources 14.80% 19.93% 10.37%
Great Panther Mining -36.73% -60.74% -19.39%

Earnings and Valuation

This table compares Amerigo Resources and Great Panther Mining’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amerigo Resources $199.60 million 0.64 $39.82 million $0.16 4.81
Great Panther Mining $185.68 million 0.00 -$42.24 million ($1.26) N/A

Amerigo Resources has higher revenue and earnings than Great Panther Mining. Great Panther Mining is trading at a lower price-to-earnings ratio than Amerigo Resources, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Amerigo Resources has a beta of 2.91, indicating that its share price is 191% more volatile than the S&P 500. Comparatively, Great Panther Mining has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Summary

Amerigo Resources beats Great Panther Mining on 8 of the 10 factors compared between the two stocks.

About Amerigo Resources

(Get Rating)

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., produces and sells copper and molybdenum concentrates from Codelco's El Teniente underground mine in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002. Amerigo Resources Ltd. was incorporated in 1984 and is headquartered in Vancouver, Canada.

About Great Panther Mining

(Get Rating)

Great Panther Mining Limited operates as a precious metals mining and exploration company. It explores for gold, silver, copper, lead, and zinc ores. The company operates three mines, including the Tucano gold mine in Amapá State, Brazil; and the Guanajuato mine complex and the Topia mine in Mexico, as well as Coricancha mine complex in the central Andes, Peru. Its exploration properties also include the El Horcón, Santa Rosa, and Plomo projects in Mexico. The company was formerly known as Great Panther Silver Limited and changed its name to Great Panther Mining Limited in March 2019. Great Panther Mining Limited was incorporated in 1965 and is headquartered in Vancouver, Canada.

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