Buenaventura Mining (NYSE: BVN) and Agnico Eagle Mines Limited (NYSE:AEM) are both mid-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Dividends

Buenaventura Mining pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Agnico Eagle Mines Limited pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Buenaventura Mining pays out -5.6% of its earnings in the form of a dividend. Agnico Eagle Mines Limited pays out 36.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Agnico Eagle Mines Limited has raised its dividend for 5 consecutive years. Agnico Eagle Mines Limited is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Buenaventura Mining and Agnico Eagle Mines Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buenaventura Mining -33.54% -11.01% -7.92%
Agnico Eagle Mines Limited 11.32% 5.38% 3.40%

Institutional and Insider Ownership

49.3% of Buenaventura Mining shares are held by institutional investors. Comparatively, 60.3% of Agnico Eagle Mines Limited shares are held by institutional investors. 19.3% of Buenaventura Mining shares are held by insiders. Comparatively, 0.5% of Agnico Eagle Mines Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Buenaventura Mining has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Agnico Eagle Mines Limited has a beta of -0.67, meaning that its share price is 167% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Buenaventura Mining and Agnico Eagle Mines Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buenaventura Mining 0 1 1 0 2.50
Agnico Eagle Mines Limited 1 3 6 0 2.50

Buenaventura Mining presently has a consensus target price of $15.10, suggesting a potential upside of 26.15%. Agnico Eagle Mines Limited has a consensus target price of $55.36, suggesting a potential upside of 21.21%. Given Buenaventura Mining’s higher possible upside, equities analysts plainly believe Buenaventura Mining is more favorable than Agnico Eagle Mines Limited.

Valuation & Earnings

This table compares Buenaventura Mining and Agnico Eagle Mines Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Buenaventura Mining $1.09 billion 3.38 $290.92 million ($1.44) -8.31
Agnico Eagle Mines Limited $2.21 billion 4.78 $932.83 million $1.09 41.90

Agnico Eagle Mines Limited has higher revenue and earnings than Buenaventura Mining. Buenaventura Mining is trading at a lower price-to-earnings ratio than Agnico Eagle Mines Limited, indicating that it is currently the more affordable of the two stocks.

Summary

Agnico Eagle Mines Limited beats Buenaventura Mining on 11 of the 15 factors compared between the two stocks.

Buenaventura Mining Company Profile

Compania de Minas Buenaventura S.A.A. (Buenaventura) is a precious metals company. The Company is engaged in the exploration, mining and processing of gold, silver and other metals in Peru. The Company’s segments include Production and sale of minerals; Exploration and development activities; Construction and engineering services; Energy generation and transmission services; Insurance brokerage; Rental of mining concessions; Holding of investment in shares (mainly in Minera Yanacocha S.R.L. and S.M.R.L. Chaupiloma Dos de Cajamarca), and Industrial activities. The Company operates the Orcopampa, Uchucchacua, Julcani, Mallay and Breapampa mines and has controlling interests in over three other mining companies, which operate the Colquijirca-Marcapunta, Tantahuatay and La Zanja mines. It also owns an electric power transmission company, a hydroelectric plant, a processing plant and an engineering services consulting company and non-controlling interests in various other mining companies.

Agnico Eagle Mines Limited Company Profile

Agnico Eagle Mines Limited is a gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. The Company operates through three business units. The Northern Business consists of its operations in Canada and Finland. The Company’s Canadian properties include the LaRonde mine, the Lapa mine, the Goldex mine, the Meadowbank mine and the Meliadine project, and Canadian Malartic Mine. The operations in Finland include the Kittila mine. The Southern Business consists of its operations in Mexico. Its Pinos Altos mine includes the Creston Mascota deposit. The La India mine is owned by its indirect subsidiary. Its Exploration group focuses on the identification of new mineral reserves and mineral resources, and new development opportunities in gold producing regions. Its exploration activities are concentrated in Canada, Europe, Latin America and the United States.

Receive News & Stock Ratings for Buenaventura Mining Company Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Buenaventura Mining Company Inc. and related stocks with our FREE daily email newsletter.