Hudbay Minerals (NYSE:HBM) and Quest Rare Minerals (NYSE:QRMLF) Critical Review

Hudbay Minerals (NYSE:HBM) and Quest Rare Minerals (OTCMKTS:QRMLF) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hudbay Minerals and Quest Rare Minerals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudbay Minerals 0 5 2 0 2.29
Quest Rare Minerals 0 0 0 0 N/A

Hudbay Minerals presently has a consensus target price of $9.06, indicating a potential upside of 174.62%. Given Hudbay Minerals’ higher probable upside, equities research analysts clearly believe Hudbay Minerals is more favorable than Quest Rare Minerals.

Profitability

This table compares Hudbay Minerals and Quest Rare Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudbay Minerals -3.61% 1.51% 0.69%
Quest Rare Minerals N/A N/A N/A

Insider & Institutional Ownership

63.4% of Hudbay Minerals shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Hudbay Minerals pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Quest Rare Minerals does not pay a dividend. Hudbay Minerals pays out 5.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Hudbay Minerals and Quest Rare Minerals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hudbay Minerals $1.47 billion 0.59 $85.42 million $0.39 8.46
Quest Rare Minerals N/A N/A -$1.89 million N/A N/A

Hudbay Minerals has higher revenue and earnings than Quest Rare Minerals.

Risk and Volatility

Hudbay Minerals has a beta of 2.89, meaning that its share price is 189% more volatile than the S&P 500. Comparatively, Quest Rare Minerals has a beta of 4.41, meaning that its share price is 341% more volatile than the S&P 500.

Summary

Hudbay Minerals beats Quest Rare Minerals on 8 of the 11 factors compared between the two stocks.

Hudbay Minerals Company Profile

Hudbay Minerals Inc., an integrated mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; and zinc metal. The company owns three polymetallic mines, four ore concentrators, and a zinc production facility in northern Manitoba and Saskatchewan, Canada, as well as in Cusco, Peru; and copper projects in Arizona and Nevada, the United States. HudBay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.

Quest Rare Minerals Company Profile

Quest Rare Minerals Ltd. focuses on the exploration, evaluation, and development of rare earth element deposits in Canada. It primarily develops Strange Lake rare earth deposits comprising 534 individual mineral claims covering a total area of approximately 23,230 hectares located in northeastern Québec. The company was formerly known as Quest Uranium Corporation and changed its name to Quest Rare Minerals Ltd. in April 2010. Quest Rare Minerals Ltd. was incorporated in 2007 and is headquartered in Montreal, Canada.

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