Critical Review: Buenaventura Mining (NYSE:BVN) & Hochschild Mining (OTCMKTS:HCHDF)

Hochschild Mining (OTCMKTS:HCHDF) and Buenaventura Mining (NYSE:BVN) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Dividends

Hochschild Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Buenaventura Mining pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Buenaventura Mining pays out 14.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Hochschild Mining and Buenaventura Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hochschild Mining	$947.70 million	2.14	$97.00 million	N/A	N/A
Buenaventura Mining	$1.15 billion	3.67	$402.69 million	$1.89	8.84

Buenaventura Mining has higher revenue and earnings than Hochschild Mining.

Analyst Recommendations

This is a summary of recent ratings for Hochschild Mining and Buenaventura Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hochschild Mining	0	1	1	2	3.25
Buenaventura Mining	0	1	1	0	2.50

Buenaventura Mining has a consensus target price of $16.75, suggesting a potential upside of 0.29%. Given Buenaventura Mining’s higher probable upside, analysts clearly believe Buenaventura Mining is more favorable than Hochschild Mining.

Profitability

This table compares Hochschild Mining and Buenaventura 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
Buenaventura Mining	39.60%	9.19%	6.53%

Risk and Volatility

Hochschild Mining has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Buenaventura Mining has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Summary

Buenaventura Mining beats Hochschild Mining on 8 of the 12 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 Buenaventura Mining

Compañía de Minas Buenaventura S.A.A. engages in the exploration, development, construction, and operation of mineral processing business. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company owns interests in Colquijirca, La Zanja, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces monohydrate manganese sulphate; and operates hydroelectric power plants. Compañía de Minas Buenaventura S.A.A. was incorporated in 1953 and is based in Lima, Peru.