Hochschild Mining (OTCMKTS:HCHDF) versus Fresnillo (OTCMKTS:FNLPF) Critical Comparison

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hochschild Mining	0	1	1	2	3.25
Fresnillo	0	3	0	1	2.50

Profitability

This table compares Hochschild Mining and Fresnillo’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
Fresnillo	N/A	N/A	N/A

Dividends

Hochschild Mining pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Fresnillo pays an annual dividend of $0.41 per share and has a dividend yield of 1.4%.

Risk and Volatility

Hochschild Mining has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Fresnillo has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hochschild Mining and Fresnillo”s gross 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	2.43	$97.00 million	N/A	N/A
Fresnillo	$3.50 billion	5.98	$140.92 million	N/A	N/A

Fresnillo has higher revenue and earnings than Hochschild Mining.

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 Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.