Head to Head Analysis: Hecla Mining (NYSE:HL) vs. Aura Minerals (NASDAQ:AUGO)

Aura Minerals (NASDAQ:AUGO – Get Free Report) and Hecla Mining (NYSE:HL – Get Free Report) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Dividends

Aura Minerals pays an annual dividend of $2.88 per share and has a dividend yield of 3.4%. Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Aura Minerals pays out 81.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hecla Mining pays out 2.0% of its earnings in the form of a dividend.

Volatility and Risk

Aura Minerals has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Hecla Mining has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aura Minerals and Hecla Mining, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aura Minerals 0 3 4 0 2.57
Hecla Mining 1 5 4 0 2.30

Aura Minerals currently has a consensus target price of $86.95, indicating a potential upside of 3.06%. Hecla Mining has a consensus target price of $23.34, indicating a potential upside of 53.22%. Given Hecla Mining’s higher possible upside, analysts plainly believe Hecla Mining is more favorable than Aura Minerals.

Institutional & Insider Ownership

63.0% of Hecla Mining shares are owned by institutional investors. 0.7% of Hecla Mining shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Aura Minerals and Hecla Mining”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aura Minerals $1.29 billion 5.49 -$79.34 million $3.54 23.83
Hecla Mining $1.74 billion 5.87 $321.71 million $0.49 31.09

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

Profitability

This table compares Aura Minerals and Hecla Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aura Minerals 23.18% 103.62% 21.84%
Hecla Mining 20.84% 18.91% 14.58%

Summary

Hecla Mining beats Aura Minerals on 9 of the 15 factors compared between the two stocks.

About Aura Minerals

(Get Free Report)

We are an Americas gold and copper production company with a significant portfolio of mining operations. Our mission is to deliver long-term value by unlocking operational efficiencies, responsibly growing our portfolio with a focus on return on invested capital, responsible mining practices and a commitment to sustainability. We operate with a decentralized culture, supported by a lean corporate team that ensures agile and dynamic management and decision-making processes, focused on high operational sustainability compliance standards. We believe that our success as a gold and copper mining company is the result of a combination of strategic acquisitions, mine expansions and development and efficiency improvements. Backed by a traditional Brazilian family of seasoned gold-focused entrepreneurs and mine developers, as well as a new management team, we have undergone a significant transformation since 2016, enhancing our profitability, replenishing resources and even extending the life-of-mine (LOM) across our operating assets, while also facilitating inorganic expansion — consistently guided by a disciplined commitment to value creation and sustainable growth. We have a track record of expanding and building new mines on-time and on-budget, with ramp-up capabilities, consistent cash flow generation and dividend payments while delivering an attractive return on investment. Our disciplined cost management ensures efficiency in reserve development while we strive to serve as the benchmark for operational security and excellence in project development. Strategically, we prioritize high-IRR (Internal Rate of Return) growth opportunities, balancing capital appreciation with reliable dividend distributions. We currently operate four wholly-owned operating mines and one mine in ramp-up phase. Our operating mines are the Aranzazu copper-gold-silver mine in Mexico, the Apoena and Almas gold mines in Brazil and the Minosa gold mine in Honduras. Additionally, we own and operate the Borborema gold mine in Brazil, which is currently in its ramp-up phase and is expected to achieve commercial production by the third quarter of 2025. In addition to our operating mines, our main development projects are the Era Dorada gold project in Guatemala and the Matupá gold project in Brazil. We have significant exploration potential, owning over 563,558 hectares of mineral rights, and we are currently advancing multiple near-mine and regional targets along with the Carajás (Serra da Estrela) copper project in the prolific Carajás region of Brazil. Our registered office is located the British Virgin Islands.

About Hecla Mining

(Get Free Report)

Hecla Mining Company, together with its subsidiaries, provides precious and base metal properties in the United States, Canada, Japan, Korea, and China. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for custom smelters, metal traders, and third-party processors; and doré containing silver and gold. It flagship project is the Greens Creek mine located on Admiralty Island in southeast Alaska. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.

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