Head to Head Contrast: Gold Resource (NYSE:GORO) versus Santacruz Silver Mining (OTCMKTS:SCZMF)

Gold Resource (NYSE:GORO) and Santacruz Silver Mining (OTCMKTS:SCZMF) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

18.4% of Gold Resource shares are owned by institutional investors. 1.3% of Gold Resource shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Gold Resource and Santacruz Silver Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Resource	0	0	1	0	3.00
Santacruz Silver Mining	0	0	0	0	0.00

Gold Resource presently has a consensus target price of $1.50, suggesting a potential upside of 74.83%. Given Gold Resource’s stronger consensus rating and higher probable upside, research analysts clearly believe Gold Resource is more favorable than Santacruz Silver Mining.

Valuation & Earnings

This table compares Gold Resource and Santacruz Silver Mining”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Resource	$61.43 million	2.26	-$16.02 million	($0.34)	-2.52
Santacruz Silver Mining	N/A	N/A	N/A	N/A	N/A

Santacruz Silver Mining has lower revenue, but higher earnings than Gold Resource.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gold Resource	-61.31%	-35.25%	-16.15%
Santacruz Silver Mining	N/A	N/A	N/A

Summary

Gold Resource beats Santacruz Silver Mining on 6 of the 9 factors compared between the two stocks.

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.