Lundin Mining (OTCMKTS:LUNMF) and Searchlight Minerals (OTCMKTS:SRCH) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Volatility and Risk
Lundin Mining has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Searchlight Minerals has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Lundin Mining and Searchlight Minerals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lundin Mining currently has a consensus price target of $8.31, indicating a potential upside of 47.79%. Given Lundin Mining’s higher probable upside, equities research analysts clearly believe Lundin Mining is more favorable than Searchlight Minerals.
Valuation and Earnings
This table compares Lundin Mining and Searchlight Minerals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lundin Mining||$1.89 billion||2.18||$167.26 million||N/A||N/A|
Lundin Mining has higher revenue and earnings than Searchlight Minerals.
This table compares Lundin Mining and Searchlight Minerals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
0.3% of Lundin Mining shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Lundin Mining beats Searchlight Minerals on 8 of the 8 factors compared between the two stocks.
Lundin Mining Company Profile
Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, the United States, Portugal, and Sweden. It primarily produces copper, zinc, and nickel, as well as gold, lead, silver, and other metals. The company holds 100% interests in the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; the Zinkgruvan mine located in Sweden, as well as 80% interest in the Candelaria and Ojos del Salado mining complex located in Chile; 24% interest in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland; and the Chapada copper-gold mine located in Brazil. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Toronto, Canada.
Searchlight Minerals Company Profile
Searchlight Minerals Corp., an exploration stage company, engages in a slag reprocessing project; and the acquisition and exploration of mineral properties in the United States. The company holds interests in the Clarkdale slag project, located in Clarkdale, Arizona, which is a reclamation project to recover precious and base metals from the reprocessing of slag produced from the smelting of copper ore mined at the United Verde Copper Mine in Jerome, Arizona. It also rents land to Clarkdale Arizona Central Railroad. The company was formerly known as Phage Genomics, Inc and changed its name to Searchlight Minerals Corp. in June 2005. Searchlight Minerals Corp. was founded in 1999 and is headquartered in Henderson, Nevada.
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