Critical Contrast: HudBay Minerals (NYSE:HBM) and Perpetua Resources (NASDAQ:PPTA)

Perpetua Resources (NASDAQ:PPTA) and HudBay Minerals (NYSE:HBM) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Valuation and Earnings

This table compares Perpetua Resources and HudBay Minerals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perpetua Resources	N/A	N/A	-$14.48 million	($0.50)	-57.12
HudBay Minerals	$2.21 billion	3.57	$568.50 million	$1.43	13.90

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

Risk & Volatility

Perpetua Resources has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500. Comparatively, HudBay Minerals has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Perpetua Resources and HudBay Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perpetua Resources	1	0	6	1	2.88
HudBay Minerals	0	2	12	1	2.93

Perpetua Resources currently has a consensus target price of $35.00, suggesting a potential upside of 22.55%. HudBay Minerals has a consensus target price of $26.00, suggesting a potential upside of 30.82%. Given HudBay Minerals’ stronger consensus rating and higher possible upside, analysts plainly believe HudBay Minerals is more favorable than Perpetua Resources.

Institutional & Insider Ownership

70.1% of Perpetua Resources shares are owned by institutional investors. Comparatively, 57.8% of HudBay Minerals shares are owned by institutional investors. 1.5% of Perpetua Resources shares are owned by insiders. Comparatively, 0.3% of HudBay Minerals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Perpetua Resources and HudBay Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perpetua Resources	N/A	-14.14%	-13.71%
HudBay Minerals	25.71%	8.91%	4.56%

Summary

HudBay Minerals beats Perpetua Resources on 11 of the 13 factors compared between the two stocks.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.

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.