Head-To-Head Review: Hochschild Mining (OTCMKTS:HCHDF) and Hecla Mining (NYSE:HL)

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

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%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hochschild Mining and Hecla Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hochschild Mining	0	1	1	2	3.25
Hecla Mining	0	5	2	0	2.29

Hecla Mining has a consensus target price of $7.07, indicating a potential upside of 17.72%. Given Hecla Mining’s higher probable upside, analysts plainly believe Hecla Mining is more favorable than Hochschild Mining.

Insider and Institutional Ownership

63.0% of Hecla Mining shares are owned by institutional investors. 0.6% of Hecla Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments 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.

Volatility & Risk

Hochschild Mining has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Hecla Mining has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hochschild Mining and Hecla Mining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hochschild Mining	$947.70 million	1.93	$97.00 million	N/A	N/A
Hecla Mining	$1.00 billion	3.79	$35.80 million	$0.11	54.61

Hochschild Mining has higher earnings, but lower revenue than Hecla Mining.

Summary

Hecla Mining beats Hochschild Mining on 10 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.