Comparing Hochschild Mining (OTCMKTS:HCHDF) & Hecla Mining (NYSE:HL)

Hochschild Mining (OTCMKTS:HCHDF) and Hecla Mining (NYSE:HL) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares Hochschild Mining and Hecla Mining”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hochschild Mining	$947.70 million	1.91	$97.00 million	N/A	N/A
Hecla Mining	$929.92 million	3.98	$35.80 million	$0.11	53.23

Hochschild Mining has higher revenue and earnings than Hecla Mining.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hochschild Mining and Hecla Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hochschild Mining	0	1	1	2	3.25
Hecla Mining	0	3	2	0	2.40

Hecla Mining has a consensus target price of $7.10, suggesting a potential upside of 21.26%. Given Hecla Mining’s higher possible upside, analysts clearly believe Hecla Mining is more favorable than Hochschild Mining.

Risk & Volatility

Hochschild Mining has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Hecla Mining has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Profitability

This table compares Hochschild Mining and Hecla Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hochschild Mining	N/A	N/A	N/A
Hecla Mining	7.13%	3.87%	2.64%

Insider and Institutional Ownership

63.0% of Hecla Mining shares are held by institutional investors. 1.4% of Hecla Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Hochschild Mining pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Hecla Mining pays out 9.1% of its earnings in the form of a dividend.

Summary

Hecla Mining beats Hochschild Mining on 9 of the 15 factors compared between the two stocks.

About Hochschild Mining

Hochschild Mining plc, a precious metals company, engages in the exploration, mining, processing, and sale of gold and silver in the Americas. The company holds 100% interests in the Inmaculada gold/silver underground operation and Pallancata silver/gold property, which are located in the Department of Ayacucho in southern Peru. It also holds a 51% interest in the San Jose silver/gold mine located in Argentina. In addition, the company has a portfolio of projects located across Peru, Argentina, Mexico, United States, Canada, Brazil, and Chile. Further, it is involved in the power generation business. Hochschild Mining plc was founded in 1911 and is based in London, the United Kingdom.

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.