Hecla Mining (NYSE:HL) and Intrepid Potash (NYSE:IPI) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.
Valuation and Earnings
This table compares Hecla Mining and Intrepid Potash's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Hecla Mining | $673.27 million | 4.91 | $-99,560,000.00 | ($0.13) | -47.54 |
| Intrepid Potash | $220.07 million | 1.80 | $13.63 million | $1.00 | 29.46 |
Intrepid Potash has lower revenue, but higher earnings than Hecla Mining. Hecla Mining is trading at a lower price-to-earnings ratio than Intrepid Potash, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
57.0% of Hecla Mining shares are owned by institutional investors. Comparatively, 30.8% of Intrepid Potash shares are owned by institutional investors. 1.8% of Hecla Mining shares are owned by company insiders. Comparatively, 26.4% of Intrepid Potash shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Hecla Mining and Intrepid Potash, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Hecla Mining | 0 | 4 | 3 | 0 | 2.43 |
| Intrepid Potash | 1 | 1 | 1 | 0 | 2.00 |
Hecla Mining presently has a consensus target price of $6.2417, indicating a potential upside of 1.00%. Intrepid Potash has a consensus target price of $22.8667, indicating a potential downside of 21.93%. Given Hecla Mining's stronger consensus rating and higher probable upside, equities research analysts plainly believe Hecla Mining is more favorable than Intrepid Potash.
Profitability
This table compares Hecla Mining and Intrepid Potash's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Hecla Mining | -3.51% | 0.95% | 0.60% |
| Intrepid Potash | -12.34% | -4.43% | -3.27% |
Risk and Volatility
Hecla Mining has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500.
Summary
Hecla Mining beats Intrepid Potash on 9 of the 14 factors compared between the two stocks.
