Reviewing Franklin Mining (OTCMKTS:FMNJ) & Gatos Silver (NYSE:GATO)

Franklin Mining (OTCMKTS:FMNJ) and Gatos Silver (NYSE:GATO) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Franklin Mining and Gatos Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Mining	N/A	N/A	N/A
Gatos Silver	N/A	4.05%	3.77%

Risk and Volatility

Franklin Mining has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Gatos Silver has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.

Valuation and Earnings

This table compares Franklin Mining and Gatos Silver’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Mining	N/A	N/A	N/A	N/A	N/A
Gatos Silver	N/A	N/A	$12.86 million	$0.22	47.32

Insider and Institutional Ownership

44.8% of Gatos Silver shares are owned by institutional investors. 20.0% of Franklin Mining shares are owned by company insiders. Comparatively, 3.8% of Gatos Silver shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Franklin Mining and Gatos Silver, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Mining	0	0	0	0	N/A
Gatos Silver	0	2	3	1	2.83

Gatos Silver has a consensus target price of $11.40, indicating a potential upside of 9.72%. Given Gatos Silver’s higher possible upside, analysts clearly believe Gatos Silver is more favorable than Franklin Mining.

Summary

Gatos Silver beats Franklin Mining on 7 of the 8 factors compared between the two stocks.

About Franklin Mining

Franklin Mining, Inc., a mining and exploration company, acquires and develops mineral properties. The company explores for gold, silver, lead, and zinc deposits. It owns interests in the La Joya mining concession in Bolivia; and Madre de Dios Area, Ch-Mine, and Los Totems project in Peru. The company was formerly known as WCM Capital, Inc. Franklin Mining, Inc. was founded in 1864 and is based in Carson City, Nevada.

About Gatos Silver

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.