HudBay Minerals (NYSE:HBM – Get Free Report) and Energizer Resources (OTCMKTS:NSRCF – Get Free Report) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Risk and Volatility
HudBay Minerals has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Energizer Resources has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
Earnings & Valuation
This table compares HudBay Minerals and Energizer Resources”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HudBay Minerals | $2.21 billion | 4.60 | $568.50 million | $1.66 | 15.44 |
| Energizer Resources | $710,000.00 | 69.97 | -$23.26 million | ($0.19) | -1.41 |
HudBay Minerals has higher revenue and earnings than Energizer Resources. Energizer Resources is trading at a lower price-to-earnings ratio than HudBay Minerals, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
57.8% of HudBay Minerals shares are owned by institutional investors. 0.3% of HudBay Minerals shares are owned by company insiders. Comparatively, 4.6% of Energizer Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares HudBay Minerals and Energizer Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HudBay Minerals | 27.75% | 10.04% | 5.36% |
| Energizer Resources | -3,149.65% | -89.77% | -34.88% |
Analyst Ratings
This is a summary of current recommendations for HudBay Minerals and Energizer Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HudBay Minerals | 0 | 2 | 10 | 2 | 3.00 |
| Energizer Resources | 0 | 0 | 0 | 1 | 4.00 |
HudBay Minerals currently has a consensus target price of $27.33, indicating a potential upside of 6.65%. Given HudBay Minerals’ higher possible upside, equities analysts clearly believe HudBay Minerals is more favorable than Energizer Resources.
Summary
HudBay Minerals beats Energizer Resources on 12 of the 15 factors compared between the two stocks.
About HudBay Minerals
Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.
About Energizer Resources
NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.
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