Head to Head Analysis: Skeena Resources (NYSE:SKE) versus Platinum Group Metals (NYSE:PLG)

Platinum Group Metals (NYSE:PLG) and Skeena Resources (NYSE:SKE) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Institutional and Insider Ownership

16.3% of Platinum Group Metals shares are owned by institutional investors. Comparatively, 45.2% of Skeena Resources shares are owned by institutional investors. 0.0% of Platinum Group Metals shares are owned by insiders. Comparatively, 2.0% of Skeena Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Platinum Group Metals has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Platinum Group Metals and Skeena Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Platinum Group Metals	0	0	0	0	N/A
Skeena Resources	0	0	1	0	3.00

Skeena Resources has a consensus target price of $18.00, suggesting a potential upside of 297.35%. Given Skeena Resources’ higher probable upside, analysts clearly believe Skeena Resources is more favorable than Platinum Group Metals.

Valuation and Earnings

This table compares Platinum Group Metals and Skeena Resources’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Platinum Group Metals	N/A	N/A	-$5.66 million	($0.06)	-27.83
Skeena Resources	N/A	N/A	-$80.73 million	($1.02)	-4.44

Platinum Group Metals is trading at a lower price-to-earnings ratio than Skeena Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Platinum Group Metals and Skeena Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Platinum Group Metals	N/A	-10.96%	-10.51%
Skeena Resources	N/A	-87.83%	-63.67%

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.

About Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.