Buenaventura Mining (BVN) versus The Competition Critical Analysis

Buenaventura Mining (NYSE:BVN) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Buenaventura Mining to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, institutional ownership and earnings.

Risk & Volatility

Buenaventura Mining has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Buenaventura Mining’s rivals have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Buenaventura Mining and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Buenaventura Mining	$1.73 billion	$782.15 million	6.12
Buenaventura Mining Competitors	$4.65 billion	$278.94 million	-26.30

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

Dividends

Buenaventura Mining pays an annual dividend of $1.09 per share and has a dividend yield of 3.8%. Buenaventura Mining pays out 23.1% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.9% and pay out 10.8% of their earnings in the form of a dividend. Buenaventura Mining lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Buenaventura Mining and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Buenaventura Mining	51.78%	27.60%	19.61%
Buenaventura Mining Competitors	-1,168,050,136,845,918,000.00%	-53.06%	-2.08%

Institutional and Insider Ownership

16.0% of shares of all “Metals & Mining” companies are held by institutional investors. 19.3% of Buenaventura Mining shares are held by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Buenaventura Mining and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Buenaventura Mining	0	2	2	0	2.50
Buenaventura Mining Competitors	6410	22614	32314	1801	2.47

Buenaventura Mining currently has a consensus price target of $37.25, suggesting a potential upside of 29.04%. As a group, “Metals & Mining” companies have a potential upside of 23.18%. Given Buenaventura Mining’s stronger consensus rating and higher probable upside, equities analysts plainly believe Buenaventura Mining is more favorable than its rivals.

Summary

Buenaventura Mining beats its rivals on 8 of the 15 factors compared.

About Buenaventura Mining

Compañía de Minas Buenaventura S.A.A. engages in the exploration, development, construction, and operation of mineral processing business. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company owns interests in Colquijirca, La Zanja, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces monohydrate manganese sulphate; and operates hydroelectric power plants. Compañía de Minas Buenaventura S.A.A. was incorporated in 1953 and is based in Lima, Peru.