Critical Comparison: HudBay Minerals (NYSE:HBM) & Energizer Resources (OTCMKTS:NSRCF)

HudBay Minerals (NYSE:HBMGet Free Report) and Energizer Resources (OTCMKTS:NSRCFGet 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

(Get Free Report)

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

(Get Free Report)

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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