Hecla Mining Company (NYSE: HL) and Endeavour Silver Corporation (NYSE:EXK) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitabiliy, dividends, institutional ownership, valuation, analyst recommendations and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hecla Mining Company and Endeavour Silver Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hecla Mining Company 0 4 3 0 2.43
Endeavour Silver Corporation 1 4 4 0 2.33

Hecla Mining Company currently has a consensus target price of $6.94, suggesting a potential upside of 33.67%. Endeavour Silver Corporation has a consensus target price of $6.13, suggesting a potential upside of 109.76%. Given Endeavour Silver Corporation’s higher probable upside, analysts clearly believe Endeavour Silver Corporation is more favorable than Hecla Mining Company.

Institutional and Insider Ownership

57.1% of Hecla Mining Company shares are owned by institutional investors. Comparatively, 30.7% of Endeavour Silver Corporation shares are owned by institutional investors. 1.8% of Hecla Mining Company shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Hecla Mining Company 14.75% 5.45% 3.38%
Endeavour Silver Corporation 5.35% 6.33% 4.63%

Risk and Volatility

Hecla Mining Company has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Endeavour Silver Corporation has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.

Dividends

Hecla Mining Company pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Endeavour Silver Corporation does not pay a dividend. Hecla Mining Company pays out 4.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Hecla Mining Company and Endeavour Silver Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hecla Mining Company $657.48 million 3.13 $244.63 million $0.25 20.76
Endeavour Silver Corporation $151.67 million 2.45 $31.75 million $0.06 48.67

Hecla Mining Company has higher revenue and earnings than Endeavour Silver Corporation. Hecla Mining Company is trading at a lower price-to-earnings ratio than Endeavour Silver Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Hecla Mining Company beats Endeavour Silver Corporation on 10 of the 16 factors compared between the two stocks.

About Hecla Mining Company

Hecla Mining Company is engaged in discovering, acquiring, developing and producing silver, gold, lead and zinc. The Company and its subsidiaries provide precious and base metals to the United States and around the world. It produces lead, zinc and bulk concentrates, which it markets to custom smelters and brokers, and unrefined bullion bars (dore) containing gold and silver. Its segments include the Greens Creek, Lucky Friday, Casa Berardi and San Sebastian units. It is focused on its San Sebastian project; North Idaho’s Silver Valley; Greens Creek unit on Alaska’s Admiralty Island; the silver-producing district near Durango, Mexico; the Abitibi region of north-western Quebec, Canada; the Rock Creek and Montanore projects in northwestern Montana and the Creede district of Southwestern Colorado. It produces zinc, lead and bulk flotation concentrates at its Greens Creek unit and lead and zinc flotation concentrates at its Lucky Friday unit.

About Endeavour Silver Corporation

Endeavour Silver Corp. is engaged in silver mining in Mexico, and related activities, including property acquisition, exploration, development, mineral extraction, processing, refining and reclamation. The Company is engaged in exploration activities in Chile. The Company’s operating mining segments include Guanacevi, Bolanitos and El Cubo, which are located in Mexico, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile. The Company produces silver-gold from its underground mines at Guanacevi, Bolanitos and El Cubo in Mexico. Its exploration projects include Guadalupe y Calvo, Parral Mine, Terronera and Lourdes. The Company conducts its business primarily in Mexico through its subsidiary companies, such as Endeavour Gold Corporation, S.A. de C.V., Minera Plata Adelante, S.A. de C.V., Refinadora Plata Guanacevi, S.A. de C.V., Minas Lupycal S.A. de C.V. and MXRT Holdings Inc.

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