Hecla Mining (NYSE: HL) and AuRico Gold (NYSE:AUQ) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Hecla Mining and AuRico Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hecla Mining 0 3 2 0 2.40
AuRico Gold 0 0 0 0 N/A

Hecla Mining currently has a consensus target price of $7.20, indicating a potential upside of 35.59%. Given Hecla Mining’s higher probable upside, equities research analysts clearly believe Hecla Mining is more favorable than AuRico Gold.

Profitability

This table compares Hecla Mining and AuRico Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hecla Mining 7.88% 2.56% 1.60%
AuRico Gold -53.95% -8.75% -6.19%

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. AuRico Gold does not pay a dividend. Hecla Mining pays out 7.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

59.4% of Hecla Mining shares are held by institutional investors. 1.8% of Hecla Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hecla Mining and AuRico Gold’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hecla Mining $620.46 million 3.41 $213.43 million $0.13 40.85
AuRico Gold N/A N/A N/A N/A N/A

Hecla Mining has higher revenue and earnings than AuRico Gold.

Summary

Hecla Mining beats AuRico Gold on 9 of the 10 factors compared between the two stocks.

Hecla Mining Company Profile

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.

AuRico Gold Company Profile

AuRico Gold Inc (AuRico Gold), is a gold producer with mines and projects in North America. The Company’s operations include the Young-Davidson mine in Ontario, Canada and the El Chanate mine in Sonora, Mexico. The Company’s project pipeline also includes exploration and development in Canada and Mexico. The Company owns the Young-Davidson mine, located near the town of Matachewan in Northern Ontario, Canada. The property consists of mineral leases and claims totaling 4,733 hectares. The Company owns the El Chanate mine, located 37 kilometers northeast of the town of Caborca in the state of Sonora, Mexico. El Chanate consists of an open pit mine with heap leach processing facilities. The Company’s Kemess Underground project is a gold and copper project located in north-central British Columbia, Canada, approximately 430 kilometers northwest of Prince George. The Company also has interest in Las Lajas Project and Santa Fe Project.

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