Tahoe Resources (NYSE: TAHO) and Hecla Mining (NYSE:HL) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Insider and Institutional Ownership
65.0% of Tahoe Resources shares are owned by institutional investors. Comparatively, 58.0% of Hecla Mining shares are owned by institutional investors. 1.8% of Hecla Mining shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Tahoe Resources and Hecla Mining’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tahoe Resources||$884.74 million||1.95||$433.59 million||$0.55||10.05|
|Hecla Mining||$620.46 million||3.13||$213.43 million||$0.13||37.46|
Tahoe Resources has higher revenue and earnings than Hecla Mining. Tahoe Resources is trading at a lower price-to-earnings ratio than Hecla Mining, indicating that it is currently the more affordable of the two stocks.
This table compares Tahoe Resources and Hecla Mining’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Tahoe Resources does not pay a dividend. Hecla Mining pays out 7.7% of its earnings in the form of a dividend.
Volatility and Risk
Tahoe Resources has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Hecla Mining has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.
This is a summary of recent recommendations for Tahoe Resources and Hecla Mining, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tahoe Resources currently has a consensus target price of $17.33, suggesting a potential upside of 213.44%. Hecla Mining has a consensus target price of $7.20, suggesting a potential upside of 47.84%. Given Tahoe Resources’ higher possible upside, research analysts plainly believe Tahoe Resources is more favorable than Hecla Mining.
Tahoe Resources beats Hecla Mining on 10 of the 16 factors compared between the two stocks.
About Tahoe Resources
Tahoe Resources Inc. is a mine operations, and mineral exploration and development company. The Company’s principal business activities are the exploration, development, operation and acquisition of mineral properties for the mining of precious metals in the Americas. Its business involves operating the Escobal mine, a silver mining operation located in southeastern Guatemala, the La Arena and Shahuindo mines, gold mining operations located in northwestern Peru, and the Bell Creek mine and mill and the Timmins West mine, gold mining operations located in northeastern Ontario, Canada. Its additional business objectives include the expansion of gold production at the Shahuindo and Bell Creek mines, the development of the Whitney Project and the ongoing exploration programs in Peru and Canada. It focuses on the initial evaluation of exploration/development projects with the main projects being the La Arena copper-gold sulfide project in Peru and the Fenn-Gib gold project in Canada.
About Hecla Mining
Hecla Mining Company is engaged in discovering, acquiring, developing and producing silver, gold, lead and zinc. The Company and its subsidiaries provide precious and base metals to the United States and around the world. It produces lead, zinc and bulk concentrates, which it markets to custom smelters and brokers, and unrefined bullion bars (dore) containing gold and silver. Its segments include the Greens Creek, Lucky Friday, Casa Berardi and San Sebastian units. It is focused on its San Sebastian project; North Idaho’s Silver Valley; Greens Creek unit on Alaska’s Admiralty Island; the silver-producing district near Durango, Mexico; the Abitibi region of north-western Quebec, Canada; the Rock Creek and Montanore projects in northwestern Montana and the Creede district of Southwestern Colorado. It produces zinc, lead and bulk flotation concentrates at its Greens Creek unit and lead and zinc flotation concentrates at its Lucky Friday unit.
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