Analyzing Energizer Resources (OTCMKTS:NSRCF) & HudBay Minerals (NYSE:HBM)

HudBay Minerals (NYSE:HBM) and Energizer Resources (OTCMKTS:NSRCF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares HudBay Minerals and Energizer Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HudBay Minerals	$2.21 billion	4.60	$568.50 million	$1.66	15.44
Energizer Resources	$710,000.00	69.97	-$23.26 million	($0.19)	-1.41

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

Risk & Volatility

HudBay Minerals has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Energizer Resources has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for HudBay Minerals and Energizer Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HudBay Minerals	0	2	10	2	3.00
Energizer Resources	0	0	0	1	4.00

HudBay Minerals presently has a consensus target price of $27.33, suggesting a potential upside of 6.65%. Given HudBay Minerals’ higher probable upside, research analysts plainly believe HudBay Minerals is more favorable than Energizer Resources.

Insider and Institutional Ownership

57.8% of HudBay Minerals shares are held by institutional investors. 0.3% of HudBay Minerals shares are held by company insiders. Comparatively, 4.6% of Energizer Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares HudBay Minerals and Energizer Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HudBay Minerals	27.75%	10.04%	5.36%
Energizer Resources	-3,149.65%	-89.77%	-34.88%

Summary

HudBay Minerals beats Energizer Resources on 12 of the 15 factors compared between the two stocks.

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.

About Energizer Resources

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.