Critical Contrast: Mountain Province Diamonds (MDM) & Hecla Mining (NYSE:HL)
Hecla Mining (NYSE: HL) and Mountain Province Diamonds (NASDAQ:MDM) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitabiliy, analyst recommendations, earnings and valuation.
This table compares Hecla Mining and Mountain Province Diamonds’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mountain Province Diamonds||N/A||-10.46%||-4.34%|
Risk and Volatility
Hecla Mining has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Hecla Mining and Mountain Province Diamonds, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mountain Province Diamonds||0||2||1||0||2.33|
Hecla Mining presently has a consensus target price of $6.94, indicating a potential upside of 32.65%. Mountain Province Diamonds has a consensus target price of $7.50, indicating a potential upside of 47.06%. Given Mountain Province Diamonds’ higher probable upside, analysts clearly believe Mountain Province Diamonds is more favorable than Hecla Mining.
Institutional & Insider Ownership
57.4% of Hecla Mining shares are held by institutional investors. Comparatively, 22.7% of Mountain Province Diamonds shares are held by institutional investors. 1.8% of Hecla Mining shares are held by company insiders. Comparatively, 4.8% of Mountain Province Diamonds shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Mountain Province Diamonds does not pay a dividend. Hecla Mining pays out 4.0% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Hecla Mining and Mountain Province Diamonds’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hecla Mining||$657.48 million||3.15||$244.63 million||$0.25||20.92|
|Mountain Province Diamonds||N/A||N/A||N/A||$0.02||255.00|
Hecla Mining has higher revenue and earnings than Mountain Province Diamonds. Hecla Mining is trading at a lower price-to-earnings ratio than Mountain Province Diamonds, indicating that it is currently the more affordable of the two stocks.
Hecla Mining beats Mountain Province Diamonds on 9 of the 13 factors compared between the two stocks.
Hecla Mining Company Profile
Hecla Mining Company is engaged in discovering, acquiring, developing and producing silver, gold, lead and zinc. The Company and its subsidiaries provide precious and base metals to the United States and around the world. It produces lead, zinc and bulk concentrates, which it markets to custom smelters and brokers, and unrefined bullion bars (dore) containing gold and silver. Its segments include the Greens Creek, Lucky Friday, Casa Berardi and San Sebastian units. It is focused on its San Sebastian project; North Idaho’s Silver Valley; Greens Creek unit on Alaska’s Admiralty Island; the silver-producing district near Durango, Mexico; the Abitibi region of north-western Quebec, Canada; the Rock Creek and Montanore projects in northwestern Montana and the Creede district of Southwestern Colorado. It produces zinc, lead and bulk flotation concentrates at its Greens Creek unit and lead and zinc flotation concentrates at its Lucky Friday unit.
Mountain Province Diamonds Company Profile
Mountain Province Diamonds Inc. is a resource company. The Company is focused on the mining and marketing of rough diamonds to the global market. The Company holds interests in the GK Diamond Mine. The GK Diamond Mine is located in the Northwest Territories (NWT) of Canada, in the District of Mackenzie, 300 kilometers east-northeast of Yellowknife and 80 kilometers east-southeast of the Snap Lake Mine. The GK Diamond Mine includes various kimberlite deposits, such as 5034, Hearne, Tesla and Tuzo. The GK Diamond Mine covers approximately 10,350 acres. The GK Diamond Mine includes four mining leases (numbers 4341, 4199, 4200 and 4201).
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