Comparing First Majestic Silver (AG) & Agnico Eagle Mines (AEM)

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First Majestic Silver (NYSE: AEM) and Agnico Eagle Mines (NYSE:AEM) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Institutional and Insider Ownership

24.0% of First Majestic Silver shares are held by institutional investors. Comparatively, 59.0% of Agnico Eagle Mines shares are held by institutional investors. 0.9% of First Majestic Silver shares are held by company insiders. Comparatively, 0.5% of Agnico Eagle Mines shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares First Majestic Silver and Agnico Eagle Mines’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Majestic Silver $252.29 million 4.02 -$53.27 million ($0.04) -131.25
Agnico Eagle Mines $2.24 billion 3.70 $243.88 million $1.11 32.04

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

Risk and Volatility

First Majestic Silver has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines has a beta of -0.53, meaning that its stock price is 153% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for First Majestic Silver and Agnico Eagle Mines, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Majestic Silver 0 2 3 0 2.60
Agnico Eagle Mines 0 2 10 0 2.83

First Majestic Silver presently has a consensus target price of $8.92, indicating a potential upside of 69.84%. Agnico Eagle Mines has a consensus target price of $58.33, indicating a potential upside of 64.04%. Given First Majestic Silver’s higher probable upside, analysts plainly believe First Majestic Silver is more favorable than Agnico Eagle Mines.

Dividends

Agnico Eagle Mines pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. First Majestic Silver does not pay a dividend. Agnico Eagle Mines pays out 39.6% of its earnings in the form of a dividend. Agnico Eagle Mines has raised its dividend for 6 consecutive years.

Profitability

This table compares First Majestic Silver and Agnico Eagle Mines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Majestic Silver -25.47% -3.27% -2.38%
Agnico Eagle Mines 6.84% 3.07% 1.90%

Summary

Agnico Eagle Mines beats First Majestic Silver on 12 of the 17 factors compared between the two stocks.

First Majestic Silver Company Profile

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver production in Mexico. It owns and operates six silver producing mines, including the Santa Elena Silver/Gold Mine covering an area of 101,837 hectares located in Sonora; La Encantada Silver Mine covering an area of 4,076 hectares situated in Coahuila; La Parrilla Silver Mine covering an area of 69,478 hectares located in Durango; Del Toro Silver Mine covering an area of 2,159 hectares situated in Zacatecas; San Martin Silver Mine covering an area of 38,512 hectares located in Jalisco; and La Guitarra Silver Mine that consists of 39,714 hectares situated in México State. 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 founded in 1979 and is headquartered in Vancouver, Canada.

Agnico Eagle Mines Company Profile

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. The company operates through Northern Business and Southern Business segments. It primarily produces and sells gold deposit, as well as explores for silver, zinc, and copper deposits. The company's flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2017, Its LaRonde mine had a proven and probable mineral reserve of approximately 2.7 million ounces of gold. The company is also involved in exploration activities in Canada, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was founded in 1953 and is headquartered in Toronto, Canada.

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