Lundin Mining (OTCMKTS:LUNMF) and EXXARO RESOURCE/S (OTCMKTS:EXXAY) Financial Contrast

EXXARO RESOURCE/S (OTCMKTS:EXXAY) and Lundin Mining (OTCMKTS:LUNMF) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Profitability

This table compares EXXARO RESOURCE/S and Lundin Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EXXARO RESOURCE/S N/A N/A N/A
Lundin Mining 5.07% 1.90% 1.32%

Volatility & Risk

EXXARO RESOURCE/S has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for EXXARO RESOURCE/S and Lundin Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXXARO RESOURCE/S 0 0 0 0 N/A
Lundin Mining 0 4 6 0 2.60

Earnings and Valuation

This table compares EXXARO RESOURCE/S and Lundin Mining’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EXXARO RESOURCE/S $1.93 billion 1.36 $533.58 million N/A N/A
Lundin Mining $1.73 billion 2.25 $195.85 million N/A N/A

EXXARO RESOURCE/S has higher revenue and earnings than Lundin Mining.

Dividends

EXXARO RESOURCE/S pays an annual dividend of $0.29 per share and has a dividend yield of 3.2%. Lundin Mining pays an annual dividend of $0.09 per share and has a dividend yield of 1.7%.

Institutional and Insider Ownership

0.3% of Lundin Mining shares are owned 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.

Summary

Lundin Mining beats EXXARO RESOURCE/S on 7 of the 10 factors compared between the two stocks.

About EXXARO RESOURCE/S

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia. The company operates through Coal; Ferrous; Energy; and Other segments. It produces thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; offers gas-atomised ferrosilicon for use in separation plants, as well as iron ore; and operates two wind farms. The company was formerly known as Kumba Iron Ore Limited and changed its name to Exxaro Resources Limited in November 2006. The company is based in Pretoria, South Africa.

About Lundin Mining

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, the United States, Portugal, and Sweden. It primarily produces copper, zinc, and nickel, as well as gold, lead, silver, and other metals. The company holds 100% interests in the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; the Zinkgruvan mine located in Sweden, as well as 80% interest in the Candelaria and Ojos del Salado mining complex located in Chile; 24% interest in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland; and the Chapada copper-gold mine located in Brazil. 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 Toronto, Canada.

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