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

Dividends

BHP Billiton PLC pays an annual dividend of $1.66 per share and has a dividend yield of 4.6%. McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. McEwen Mining pays out -50.0% of its earnings in the form of a dividend.

Risk and Volatility

BHP Billiton PLC has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, McEwen Mining has a beta of -1.42, meaning that its stock price is 242% less volatile than the S&P 500.

Earnings and Valuation

This table compares BHP Billiton PLC and McEwen Mining’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BHP Billiton PLC $38.66 billion 2.48 $19.37 billion N/A N/A
McEwen Mining $54.53 million 11.63 -$11.30 million ($0.02) -101.50

BHP Billiton PLC has higher revenue and earnings than McEwen Mining.

Profitability

This table compares BHP Billiton PLC and McEwen Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BHP Billiton PLC N/A N/A N/A
McEwen Mining -9.19% -1.69% -1.51%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BHP Billiton PLC and McEwen Mining, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton PLC 1 2 2 0 2.20
McEwen Mining 0 0 1 0 3.00

BHP Billiton PLC currently has a consensus target price of $37.00, indicating a potential upside of 2.66%. McEwen Mining has a consensus target price of $5.00, indicating a potential upside of 146.31%. Given McEwen Mining’s stronger consensus rating and higher possible upside, analysts clearly believe McEwen Mining is more favorable than BHP Billiton PLC.

Insider & Institutional Ownership

4.1% of BHP Billiton PLC shares are owned by institutional investors. Comparatively, 27.4% of McEwen Mining shares are owned by institutional investors. 26.6% of McEwen Mining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

BHP Billiton PLC beats McEwen Mining on 8 of the 14 factors compared between the two stocks.

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.

About McEwen Mining

McEwen Mining Inc. is a mining and minerals production and exploration company. The Company is focused on precious and base metals in Argentina, Mexico and the United States. The Company’s segments include Mexico, Minera Santa Cruz S.A. (MSC), Nevada and Los Azules. The Mexico Operations segment includes properties, such as El Gallo 1 mine and the El Gallo 2 project. The MSC segment includes properties, such as the San Jose mine and other concessions located around the mine. The Company’s properties in Nevada segment include Gold Bar project and exploration properties. The Gold Bar project is a proposed mine project. The Los Azules segment includes various properties, such as Los Azules project, Chonchones project, Laganoso project, La Cerrada project and Other Argentina properties. The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile.

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