Analyzing Endeavour Silver (NYSE:EXK) and Hochschild Mining (OTCMKTS:HCHDF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endeavour Silver	-29.07%	1.18%	0.80%
Hochschild Mining	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endeavour Silver	$217.60 million	6.97	-$31.48 million	($0.26)	-20.12
Hochschild Mining	$947.70 million	2.00	$97.00 million	N/A	N/A

Hochschild Mining has higher revenue and earnings than Endeavour Silver.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Endeavour Silver and Hochschild Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endeavour Silver	0	1	4	3	3.25
Hochschild Mining	0	1	1	2	3.25

Endeavour Silver presently has a consensus target price of $8.33, indicating a potential upside of 59.34%. Given Endeavour Silver’s higher probable upside, analysts clearly believe Endeavour Silver is more favorable than Hochschild Mining.

Volatility & Risk

Endeavour Silver has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Hochschild Mining has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Insider & Institutional Ownership

20.1% of Endeavour Silver shares are owned by institutional investors. 0.8% of Endeavour Silver shares are owned 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

Endeavour Silver beats Hochschild Mining on 9 of the 12 factors compared between the two stocks.

About Endeavour Silver

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.

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.