Critical Contrast: Lucara Diamond (LUCRF) and Its Peers

Lucara Diamond (OTCMKTS:LUCRF) is one of 1,989 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its rivals? We will compare Lucara Diamond to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Dividends

Lucara Diamond pays an annual dividend of $0.02 per share and has a dividend yield of 15.0%. Lucara Diamond pays out 8.3% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.4% and pay out 10.6% of their earnings in the form of a dividend. Lucara Diamond is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Lucara Diamond and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lucara Diamond	N/A	N/A	0.56
Lucara Diamond Competitors	$4.61 billion	$267.82 million	-21.37

Lucara Diamond’s rivals have higher revenue and earnings than Lucara Diamond. Lucara Diamond is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Lucara Diamond and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucara Diamond	0	1	0	0	2.00
Lucara Diamond Competitors	6313	22413	32023	1760	2.47

As a group, “Metals & Mining” companies have a potential upside of 13.68%. Given Lucara Diamond’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Lucara Diamond has less favorable growth aspects than its rivals.

Profitability

This table compares Lucara Diamond and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucara Diamond	N/A	N/A	N/A
Lucara Diamond Competitors	-1,155,490,457,955,101,400.00%	-14.54%	-2.08%

Insider and Institutional Ownership

32.9% of Lucara Diamond shares are held by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are held by institutional investors. 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Lucara Diamond beats its rivals on 7 of the 13 factors compared.

Lucara Diamond Company Profile

Lucara Diamond Corp., a diamond mining company, engages in the development and operation of diamond properties in Africa. The company holds 100% interests in the Karowe mine located in Botswana. It also operates Clara Platform, a digital sales platform for rough diamonds. The company was formerly known as Bannockburn Resources Limited and changed its name to Lucara Diamond Corp. in August 2007. Lucara Diamond Corp. was incorporated in 1981 and is based in Vancouver, Canada.