First Majestic Silver (NYSE:AG) and Aris Mining (NYSE:ARMN) Critical Review

Aris Mining (NYSE:ARMN) and First Majestic Silver (NYSE:AG) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Volatility & Risk

Aris Mining has a beta of -0.57, meaning that its stock price is 157% less volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

35.8% of Aris Mining shares are held by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are held by institutional investors. 0.9% of First Majestic Silver shares are held by 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Aris Mining and First Majestic Silver, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	0	0	0	0	0.00
First Majestic Silver	0	3	1	0	2.25

First Majestic Silver has a consensus price target of $8.75, indicating a potential upside of 24.20%. Given First Majestic Silver’s stronger consensus rating and higher probable upside, analysts clearly believe First Majestic Silver is more favorable than Aris Mining.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aris Mining	-0.66%	4.97%	2.70%
First Majestic Silver	-18.17%	-3.07%	-2.11%

Earnings & Valuation

This table compares Aris Mining and First Majestic Silver”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$560.51 million	2.11	$11.42 million	$0.06	114.50
First Majestic Silver	$703.06 million	4.85	-$101.89 million	($0.29)	-24.29

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

Summary

First Majestic Silver beats Aris Mining on 8 of the 14 factors compared between the two stocks.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation 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.