Critical Analysis: Gold Reserve (OTCMKTS:GDRZF) versus Endeavour Silver (OTCMKTS:EXK)

Endeavour Silver (NYSE:EXK) and Gold Reserve (OTCMKTS:GDRZF) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

18.9% of Endeavour Silver shares are owned by institutional investors. 12.8% of Gold Reserve shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Endeavour Silver has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Gold Reserve has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Valuation & Earnings

This table compares Endeavour Silver and Gold Reserve’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endeavour Silver $150.51 million 2.10 -$12.44 million ($0.09) -26.56
Gold Reserve $51.57 million 3.31 $41.86 million N/A N/A

Gold Reserve has lower revenue, but higher earnings than Endeavour Silver.

Profitability

This table compares Endeavour Silver and Gold Reserve’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endeavour Silver -20.16% -16.79% -13.77%
Gold Reserve N/A -19.14% -17.91%

Analyst Recommendations

This is a summary of recent ratings and target prices for Endeavour Silver and Gold Reserve, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endeavour Silver 0 2 2 0 2.50
Gold Reserve 0 0 0 0 N/A

Endeavour Silver currently has a consensus target price of $2.83, suggesting a potential upside of 18.55%. Given Endeavour Silver’s higher possible upside, equities research analysts plainly believe Endeavour Silver is more favorable than Gold Reserve.

Dividends

Gold Reserve pays an annual dividend of $0.76 per share and has a dividend yield of 42.4%. Endeavour Silver does not pay a dividend.

Endeavour Silver Company Profile

Endeavour Silver Corp., a mid-tier silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mining properties in Mexico and Chile. The company also explores for gold deposits and precious metals. The company has interests in three producing silver-gold mines in Mexico, including the Guanaceví mine in Durango; the Bolañitos mine in Guanajuato; and the El Cubo mine in Guanajuato. It also has interests in the El Compas mine in Zacatecas; and exploration and development projects comprising the Terronera property in Jalisco the Parral properties in Chihuahua in Mexico. In addition, it holds interests in the Guadalupe y Calvo property located in Chihuahua State; and the Lourdes located in the state of Guanajuato, Mexico, as well as in the Aida silver, the Paloma gold, and the Cerro Marquez copper-molybdenum-gold projects located in Chile. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was founded in 1981 and is headquartered in Vancouver, Canada.

Gold Reserve Company Profile

Gold Reserve Inc., an exploration stage company, acquires, explores, and develops mineral properties. The company primarily focuses on the Siembra Minera Project, an open pit gold-copper mining project located in Bolivar, Venezuela. It also has an interest in the LMS Gold Project in Alaska. The company was founded in 1956 and is based in Spokane, Washington.

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