Financial Comparison: Hochschild Mining (OTCMKTS:HCHDF) versus Endeavour Silver (NYSE:EXK)

Endeavour Silver (NYSE:EXK) and Hochschild Mining (OTCMKTS:HCHDF) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Volatility and Risk

Endeavour Silver has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Hochschild Mining has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Endeavour Silver and Hochschild Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endeavour Silver	0	1	4	3	3.25
Hochschild Mining	0	1	1	2	3.25

Endeavour Silver presently has a consensus target price of $8.33, indicating a potential upside of 67.67%. Given Endeavour Silver’s higher probable upside, equities research analysts clearly believe Endeavour Silver is more favorable than Hochschild Mining.

Earnings & Valuation

This table compares Endeavour Silver and Hochschild Mining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endeavour Silver	$217.60 million	6.62	-$31.48 million	($0.26)	-19.12
Hochschild Mining	$947.70 million	2.10	$97.00 million	N/A	N/A

Hochschild Mining has higher revenue and earnings than Endeavour Silver.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endeavour Silver	-29.07%	1.18%	0.80%
Hochschild Mining	N/A	N/A	N/A

Insider & Institutional Ownership

20.1% of Endeavour Silver shares are held by institutional investors. 0.8% of Endeavour Silver 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.

Summary

Endeavour Silver beats Hochschild Mining on 9 of the 12 factors compared between the two stocks.

About Endeavour Silver

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Chile and the United States. It explores for gold and silver deposits, and precious metals. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.

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.