Lundin Mining (LUNMF) & The Competition Critical Comparison

Lundin Mining (OTC:LUNMF) is one of 113 publicly-traded companies in the “Metal mining” industry, but how does it contrast to its peers? We will compare Lundin Mining to similar businesses based on the strength of its analyst recommendations, earnings, profitability, risk, valuation, institutional ownership and dividends.

Institutional and Insider Ownership

0.1% of Lundin Mining shares are held by institutional investors. Comparatively, 27.5% of shares of all “Metal mining” companies are held by institutional investors. 0.4% of Lundin Mining shares are held by insiders. Comparatively, 12.9% of shares of all “Metal mining” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Lundin Mining has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Lundin Mining’s peers have a beta of 1.04, meaning that their average stock price is 4% more volatile than the S&P 500.

Dividends

Lundin Mining pays an annual dividend of $0.28 per share and has a dividend yield of 3.3%. Lundin Mining pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Metal mining” companies pay a dividend yield of 3.3% and pay out 51.1% of their earnings in the form of a dividend. Lundin Mining lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Lundin Mining and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	1	0	0	2.00
Lundin Mining Competitors	1250	2681	3174	135	2.30

As a group, “Metal mining” companies have a potential upside of 25.40%. Given Lundin Mining’s peers stronger consensus rating and higher probable upside, analysts plainly believe Lundin Mining has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Lundin Mining and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lundin Mining	$3.39 billion	$241.56 million	23.81
Lundin Mining Competitors	$6.71 billion	$854.60 million	0.72

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

Profitability

This table compares Lundin Mining and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lundin Mining	6.63%	5.02%	2.92%
Lundin Mining Competitors	-1,301.23%	-11.02%	-9.41%

Summary

Lundin Mining peers beat Lundin Mining on 10 of the 15 factors compared.

Lundin Mining Company Profile

LUNDIN MINING CORPORATION is a rapidly growing, diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland. The Company currently has six mines in operation producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes the world class Tenke Fungurume copper cobalt project in the Democratic Republic of Congo and the Ozernoe zinc project in Russia. The Company holds an extensive exploration portfolio and interests in international mining and exploration ventures.