Lundin Mining (OTC:LUNMF) versus Pure Energy Minerals (OTCMKTS:PEMIF) Financial Analysis

Lundin Mining (OTC:LUNMF) and Pure Energy Minerals (OTCMKTS:PEMIF) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Lundin Mining and Pure Energy Minerals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	1	0	0	2.00
Pure Energy Minerals	0	0	0	0	0.00

Valuation and Earnings

This table compares Lundin Mining and Pure Energy Minerals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lundin Mining	$3.42 billion	1.69	$241.56 million	($0.26)	-25.68
Pure Energy Minerals	$400,000.00	15.37	-$620,000.00	($0.02)	-9.05

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

Profitability

This table compares Lundin Mining and Pure Energy Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lundin Mining	-5.15%	5.27%	3.05%
Pure Energy Minerals	-172.39%	-2.63%	-2.61%

Risk & Volatility

Lundin Mining has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Pure Energy Minerals has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Lundin Mining shares are held by institutional investors. 0.4% of Lundin Mining shares are held by company 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.

Summary

Lundin Mining beats Pure Energy Minerals on 9 of the 12 factors compared between the two stocks.

About Lundin Mining

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.

About Pure Energy Minerals

Pure Energy Minerals Limited acquires, explores, and develops mineral properties. Its primary project is the Clayton Valley lithium brine project located in Clayton Valley, Esmeralda County, Nevada. The company was formerly known as Harmony Gold Corp. and changed its name to Pure Energy Minerals Limited in October 2012. Pure Energy Minerals Limited is headquartered in Vancouver, Canada.