HudBay Minerals (NYSE:HBM) versus Select Sands (OTCMKTS:SLSDF) Head-To-Head Review

Select Sands (OTCMKTS:SLSDF) and HudBay Minerals (NYSE:HBM) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Select Sands and HudBay Minerals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Sands	0	0	0	0	0.00
HudBay Minerals	0	2	12	2	3.00

HudBay Minerals has a consensus target price of $26.00, indicating a potential downside of 8.20%. Given Select Sands’ higher possible upside, equities analysts clearly believe Select Sands is more favorable than HudBay Minerals.

Institutional and Insider Ownership

57.8% of HudBay Minerals shares are owned by institutional investors. 0.3% of HudBay Minerals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Select Sands and HudBay Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Select Sands	N/A	N/A	N/A
HudBay Minerals	25.71%	8.91%	4.56%

Risk and Volatility

Select Sands has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, HudBay Minerals has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Select Sands and HudBay Minerals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Select Sands	N/A	N/A	N/A	($0.04)	N/A
HudBay Minerals	$2.21 billion	5.08	$568.50 million	$1.43	19.81

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

Summary

HudBay Minerals beats Select Sands on 11 of the 12 factors compared between the two stocks.

About Select Sands

Select Sands Corp., together with its subsidiaries, engages in quarrying and producing silica sand. The company holds interest in the Sandtown project located in northeast Arkansas, the United States. It sells its products to industrial and energy customers. The company was formerly known as La Ronge Gold Corp. and changed its name to Select Sands Corp. in November 2014. Select Sands Corp. was incorporated in 2006 and is based in Houston, Texas.

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.