Reviewing Endeavour Silver (EXK) and Goldcorp (GG)

Endeavour Silver (NYSE:EXK) and Goldcorp (NYSE:GG) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Dividends

Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Endeavour Silver does not pay a dividend. Goldcorp pays out 20.0% of its earnings in the form of a dividend. Goldcorp has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Endeavour Silver and Goldcorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endeavour Silver 0 3 1 0 2.25
Goldcorp 0 6 8 1 2.67

Endeavour Silver presently has a consensus price target of $5.00, suggesting a potential upside of 134.74%. Goldcorp has a consensus price target of $15.62, suggesting a potential upside of 62.56%. Given Endeavour Silver’s higher probable upside, equities analysts clearly believe Endeavour Silver is more favorable than Goldcorp.

Risk and Volatility

Endeavour Silver has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500. Comparatively, Goldcorp has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Endeavour Silver 0.21% 0.23% 0.19%
Goldcorp 2.47% 0.97% 0.63%

Valuation and Earnings

This table compares Endeavour Silver and Goldcorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endeavour Silver $150.50 million 1.83 $9.68 million $0.08 26.63
Goldcorp $3.42 billion 2.43 $658.00 million $0.40 23.90

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

Insider & Institutional Ownership

18.9% of Endeavour Silver shares are held by institutional investors. Comparatively, 54.0% of Goldcorp shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Goldcorp beats Endeavour Silver on 14 of the 17 factors compared between the two stocks.

Endeavour Silver Company Profile

Endeavour Silver Corp., a mid-tier precious metals mining company, engages in the mining, evaluation, acquisition, exploration, development, extraction, processing, refining, and reclamation of silver in Mexico and Chile. The company also explores for gold deposits. It owns interests in the Guanaceví mine located in the Guanaceví district, Durango, Mexico; and the Bolañitos and El Cubo silver-gold mines located in the northern parts of the Guanajuato and La Luz silver districts in the state of Guanajuato, Mexico. The company also has interests in various exploration and development projects, including the Terronera property in Jalisco state; the El Compas property in Zacatecas State; and the Parral property located in Chihuahua State, 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. 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.

Goldcorp Company Profile

Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. It primarily explores for gold, silver, lead, zinc, and copper deposits. The company's principal producing mining properties include the Éléonore, Musselwhite, Porcupine, and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine in the Dominican Republic. Goldcorp Inc. was founded in 1954 and is headquartered in Vancouver, Canada.

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