Critical Analysis: Lucara Diamond (LUCRF) vs. Its Rivals

Lucara Diamond (OTCMKTS:LUCRF) is one of 1,988 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its competitors? We will compare Lucara Diamond to similar companies based on the strength of its institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Profitability

This table compares Lucara Diamond and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucara Diamond	N/A	N/A	N/A
Lucara Diamond Competitors	-1,161,736,352,322,426,600.00%	-14.42%	-2.03%

Dividends

Lucara Diamond pays an annual dividend of $0.02 per share and has a dividend yield of 15.5%. Lucara Diamond pays out 8.3% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.7% and pay out 10.6% of their earnings in the form of a dividend. Lucara Diamond is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings for Lucara Diamond and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucara Diamond	0	1	0	0	2.00
Lucara Diamond Competitors	6314	22389	32015	1765	2.47

As a group, “Metals & Mining” companies have a potential upside of 18.92%. Given Lucara Diamond’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Lucara Diamond has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Lucara Diamond and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lucara Diamond	N/A	N/A	0.54
Lucara Diamond Competitors	$5.05 billion	$273.14 million	-24.70

Lucara Diamond’s competitors have higher revenue and earnings than Lucara Diamond. Lucara Diamond is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

32.9% of Lucara Diamond shares are owned by institutional investors. Comparatively, 15.8% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Lucara Diamond beats its competitors on 7 of the 13 factors compared.

Lucara Diamond Company Profile

Lucara Diamond Corp., a diamond mining company, engages in the development and operation of diamond properties in Africa. The company holds 100% interests in the Karowe mine located in Botswana. It also operates Clara Platform, a digital sales platform for rough diamonds. The company was formerly known as Bannockburn Resources Limited and changed its name to Lucara Diamond Corp. in August 2007. Lucara Diamond Corp. was incorporated in 1981 and is based in Vancouver, Canada.