HudBay Minerals (NYSE:HBM) & Hycroft Mining (NASDAQ:HYMC) Financial Survey

Hycroft Mining (NASDAQ:HYMC) and HudBay Minerals (NYSE:HBM) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

7.4% of Hycroft Mining shares are held by institutional investors. Comparatively, 57.8% of HudBay Minerals shares are held by institutional investors. 1.3% of Hycroft Mining shares are held by insiders. Comparatively, 0.3% of HudBay Minerals shares are held 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.

Profitability

This table compares Hycroft Mining and HudBay Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hycroft Mining	N/A	-80.76%	-20.72%
HudBay Minerals	25.71%	8.91%	4.56%

Risk and Volatility

Hycroft Mining has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500. Comparatively, HudBay Minerals has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hycroft Mining and HudBay Minerals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hycroft Mining	N/A	N/A	-$40.66 million	($1.62)	-19.86
HudBay Minerals	$2.21 billion	3.37	$568.50 million	$1.43	13.15

HudBay Minerals has higher revenue and earnings than Hycroft Mining. Hycroft Mining is trading at a lower price-to-earnings ratio than HudBay Minerals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hycroft Mining and HudBay Minerals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hycroft Mining	1	0	0	0	1.00
HudBay Minerals	0	2	12	1	2.93

HudBay Minerals has a consensus target price of $26.00, suggesting a potential upside of 38.30%. Given HudBay Minerals’ stronger consensus rating and higher probable upside, analysts clearly believe HudBay Minerals is more favorable than Hycroft Mining.

Summary

HudBay Minerals beats Hycroft Mining on 12 of the 14 factors compared between the two stocks.

About Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.

About HudBay Minerals

Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.