Head-To-Head Comparison: Eldorado Gold (NYSE:EGO) & HudBay Minerals (NYSE:HBM)

Eldorado Gold (NYSE:EGO) and HudBay Minerals (NYSE:HBM) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Earnings and Valuation

This table compares Eldorado Gold and HudBay Minerals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eldorado Gold	$1.82 billion	5.17	$507.26 million	$2.82	12.74
HudBay Minerals	$2.21 billion	4.74	$568.50 million	$1.70	13.87

HudBay Minerals has higher revenue and earnings than Eldorado Gold. Eldorado Gold is trading at a lower price-to-earnings ratio than HudBay Minerals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Eldorado Gold and HudBay Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eldorado Gold	29.83%	10.91%	7.07%
HudBay Minerals	27.48%	9.47%	5.44%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Eldorado Gold and HudBay Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eldorado Gold	0	7	6	2	2.67
HudBay Minerals	0	2	10	0	2.83

Eldorado Gold currently has a consensus price target of $46.57, indicating a potential upside of 29.61%. HudBay Minerals has a consensus price target of $31.33, indicating a potential upside of 32.90%. Given HudBay Minerals’ stronger consensus rating and higher possible upside, analysts plainly believe HudBay Minerals is more favorable than Eldorado Gold.

Institutional and Insider Ownership

69.6% of Eldorado Gold shares are owned by institutional investors. Comparatively, 57.8% of HudBay Minerals shares are owned by institutional investors. 0.6% of Eldorado Gold shares are owned by company insiders. Comparatively, 0.3% of HudBay Minerals shares are owned 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.

Dividends

Eldorado Gold pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. HudBay Minerals pays an annual dividend of $0.03 per share and has a dividend yield of 0.1%. Eldorado Gold pays out 10.6% of its earnings in the form of a dividend. HudBay Minerals pays out 1.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Eldorado Gold has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, HudBay Minerals has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Summary

Eldorado Gold beats HudBay Minerals on 9 of the 17 factors compared between the two stocks.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.

About HudBay Minerals

Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.