Critical Contrast: Aya Gold & Silver (NASDAQ:AYA) & Lundin Mining (OTCMKTS:LUNMF)

Lundin Mining (OTCMKTS:LUNMF) and Aya Gold & Silver (NASDAQ:AYA) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Lundin Mining and Aya Gold & Silver, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	8	4	0	2.33
Aya Gold & Silver	0	0	2	2	3.50

Valuation and Earnings

This table compares Lundin Mining and Aya Gold & Silver”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lundin Mining	$4.05 billion	4.96	$1.28 billion	$1.73	13.66
Aya Gold & Silver	$202.10 million	19.01	$45.56 million	$0.56	47.62

Lundin Mining has higher revenue and earnings than Aya Gold & Silver. Lundin Mining is trading at a lower price-to-earnings ratio than Aya Gold & Silver, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lundin Mining and Aya Gold & Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lundin Mining	31.82%	13.18%	9.73%
Aya Gold & Silver	32.92%	25.49%	17.70%

Institutional and Insider Ownership

0.1% of Lundin Mining shares are held by institutional investors. 0.4% of Lundin Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Lundin Mining

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, Sweden, and Argentina. It primarily produces copper, zinc, gold, nickel, and molybdenum, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex; and 51% interest in the Caserones copper-molybdenum mine located in Chile, as well as owns the copper gold Josemaria project located in Argentina. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.

About Aya Gold & Silver

Aya Gold & Silver Inc., together with its subsidiaries, engages in the exploration, evaluation and development of precious metals projects principally in Morocco. The company primarily explores for gold and silver deposits. Its flagship project holds Zgounder property. Aya Gold & Silver Inc. is based in Mount Royal, Canada.