Hecla Mining (NYSE:HL – Get Free Report) and First Majestic Silver (NYSE:AG – Get Free Report) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Dividends
Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. First Majestic Silver pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Hecla Mining pays out 9.1% of its earnings in the form of a dividend. First Majestic Silver pays out -3.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation & Earnings
This table compares Hecla Mining and First Majestic Silver”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Hecla Mining | $929.92 million | 3.91 | $35.80 million | $0.11 | 52.32 |
First Majestic Silver | $703.06 million | 5.58 | -$101.89 million | ($0.29) | -27.93 |
Hecla Mining has higher revenue and earnings than First Majestic Silver. First Majestic Silver is trading at a lower price-to-earnings ratio than Hecla Mining, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Hecla Mining and First Majestic Silver, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Hecla Mining | 0 | 3 | 2 | 0 | 2.40 |
First Majestic Silver | 0 | 4 | 1 | 0 | 2.20 |
Hecla Mining presently has a consensus price target of $7.10, suggesting a potential upside of 23.37%. First Majestic Silver has a consensus price target of $8.75, suggesting a potential upside of 8.01%. Given Hecla Mining’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hecla Mining is more favorable than First Majestic Silver.
Risk & Volatility
Hecla Mining has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Profitability
This table compares Hecla Mining and First Majestic Silver’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Hecla Mining | 7.13% | 3.87% | 2.64% |
First Majestic Silver | -12.32% | -0.14% | -0.10% |
Institutional and Insider Ownership
63.0% of Hecla Mining shares are held by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are held by institutional investors. 0.6% of Hecla Mining shares are held by insiders. Comparatively, 0.9% of First Majestic Silver shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Hecla Mining beats First Majestic Silver on 13 of the 16 factors compared between the two stocks.
About Hecla Mining
Hecla Mining Company, together with its subsidiaries, provides precious and base metal properties in the United States, Canada, Japan, Korea, and China. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for custom smelters, metal traders, and third-party processors; and doré containing silver and gold. It flagship project is the Greens Creek mine located on Admiralty Island in southeast Alaska. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.
About First Majestic Silver
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.
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