MAG Silver Corp (NYSE: MAG) and BHP Billiton PLC (NYSE:BBL) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MAG Silver Corp and BHP Billiton PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MAG Silver Corp 0 0 5 2 3.29
BHP Billiton PLC 1 2 2 0 2.20

MAG Silver Corp presently has a consensus target price of $17.33, suggesting a potential upside of 36.48%. BHP Billiton PLC has a consensus target price of $37.00, suggesting a potential downside of 1.02%. Given MAG Silver Corp’s stronger consensus rating and higher probable upside, analysts plainly believe MAG Silver Corp is more favorable than BHP Billiton PLC.

Profitability

This table compares MAG Silver Corp and BHP Billiton PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MAG Silver Corp N/A -3.01% -3.00%
BHP Billiton PLC N/A N/A N/A

Earnings and Valuation

This table compares MAG Silver Corp and BHP Billiton PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MAG Silver Corp N/A N/A -$6.98 million N/A N/A
BHP Billiton PLC $39.02 billion 2.55 $19.52 billion N/A N/A

BHP Billiton PLC has higher revenue and earnings than MAG Silver Corp.

Dividends

BHP Billiton PLC pays an annual dividend of $1.66 per share and has a dividend yield of 4.4%. MAG Silver Corp does not pay a dividend.

Insider & Institutional Ownership

4.1% of BHP Billiton PLC shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

BHP Billiton PLC beats MAG Silver Corp on 6 of the 10 factors compared between the two stocks.

About MAG Silver Corp

MAG Silver Corp. is a mineral exploration and development company. The Company is focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property. Juanicipio Property is located in the Fresnillo District, Zacatecas State, Mexico. The Juanicipio Property includes silver-gold-lead-zinc epithermal vein deposit. The Company owns the mineral concessions comprising the Cinco de Mayo Property. The Cinco de Mayo Property is located approximately 190 kilometers northwest of the city of Chihuahua, in northern Chihuahua State, Mexico, and covers approximately 25,110 hectares. The Company owns the Guigui project located in the Santa Eulalia Mining District of Chihuahua, Mexico. Guigui project consists of approximately 8,300 hectares.

About BHP Billiton PLC

BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.

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