Financial Analysis: Vale (NYSE:VALE) and Avino Silver & Gold Mines (NYSE:ASM)

Vale (NYSE:VALEGet Rating) and Avino Silver & Gold Mines (NYSE:ASMGet Rating) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Vale and Avino Silver & Gold Mines’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vale $54.50 billion 1.44 $24.74 billion $4.25 3.70
Avino Silver & Gold Mines $11.23 million 7.21 -$2.06 million ($0.02) -34.81

Vale has higher revenue and earnings than Avino Silver & Gold Mines. Avino Silver & Gold Mines is trading at a lower price-to-earnings ratio than Vale, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Vale and Avino Silver & Gold Mines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vale 1 7 4 0 2.25
Avino Silver & Gold Mines 0 0 0 0 N/A

Vale currently has a consensus target price of $19.86, suggesting a potential upside of 26.36%. Given Vale’s higher probable upside, research analysts plainly believe Vale is more favorable than Avino Silver & Gold Mines.

Profitability

This table compares Vale and Avino Silver & Gold Mines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vale 40.09% 66.28% 27.19%
Avino Silver & Gold Mines N/A 3.65% 3.35%

Insider & Institutional Ownership

23.4% of Vale shares are owned by institutional investors. Comparatively, 20.0% of Avino Silver & Gold Mines shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Vale has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Avino Silver & Gold Mines has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Summary

Vale beats Avino Silver & Gold Mines on 9 of the 12 factors compared between the two stocks.

Vale Company Profile (Get Rating)

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Ferrous Minerals and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and other ferrous products; and provides related logistic services. The Base Metals segment produces and extracts nickel and its by-products, such as gold, silver, cobalt, precious metals, and others, as well as copper. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.

Avino Silver & Gold Mines Company Profile (Get Rating)

Avino Silver & Gold Mines Ltd., together with its subsidiaries, engages in the acquisition, exploration, and advancement of mineral properties in Canada. It primarily explores for silver, gold, and copper deposits. The company owns interests in 42 mineral claims and four leased mineral claims, including Avino mine area property comprising four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares; Gomez Palacio property consists of nine exploration concessions covering 2,549 hectares; Santiago Papasquiaro property comprises four exploration concessions covering 2,552.6 hectares and one exploitation concession covering 602.9 hectares; and Unification La Platosa properties, which include three leased concessions located in the state of Durango, Mexico. It also owns 100% interests in the Minto and Olympic-Kelvin properties located in British Columbia, Canada; and 14 quartz leases in Eagle property located in the Mayo Mining Division of Yukon, Canada. The company was incorporated in 1968 and is headquartered in Vancouver, Canada.

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