Critical Contrast: Hecla Mining (HL) and Its Competitors

Hecla Mining (NYSE: HL) is one of 21 publicly-traded companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it contrast to its peers? We will compare Hecla Mining to related companies based on the strength of its valuation, earnings, profitability, dividends, institutional ownership, risk and analyst recommendations.

Profitability

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This table compares Hecla Mining and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hecla Mining -4.07% 2.17% 1.36%
Hecla Mining Competitors 8.93% 9.40% 4.85%

Insider and Institutional Ownership

60.0% of Hecla Mining shares are held by institutional investors. Comparatively, 59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by institutional investors. 1.5% of Hecla Mining shares are held by insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Hecla Mining and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hecla Mining 0 2 4 0 2.67
Hecla Mining Competitors 195 698 858 28 2.40

Hecla Mining presently has a consensus price target of $5.25, suggesting a potential upside of 44.63%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 22.77%. Given Hecla Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Hecla Mining is more favorable than its peers.

Earnings and Valuation

This table compares Hecla Mining and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hecla Mining $577.78 million -$23.51 million 36.30
Hecla Mining Competitors $1.87 billion $261.07 million 14.61

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

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Hecla Mining pays out 10.0% of its earnings in the form of a dividend. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies pay a dividend yield of 2.0% and pay out 46.8% of their earnings in the form of a dividend.

Volatility & Risk

Hecla Mining has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Hecla Mining’s peers have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.

Summary

Hecla Mining peers beat Hecla Mining on 9 of the 15 factors compared.

Hecla Mining Company Profile

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal deposits worldwide. The company offers zinc, lead, and bulk flotation concentrates to custom smelters and brokers; and unrefined gold and silver bullion bars to precious metals traders. It owns 100% interests in the Greens Creek mine located on Admiralty Island, Alaska; Lucky Friday mine located in northern Idaho; Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and San Sebastian mine located in the state of Durango, Mexico. Hecla Mining Company was founded in 1891 and is headquartered in Coeur d'Alene, Idaho.

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