Critical Comparison: Hecla Mining (HL) and Its Peers

Hecla Mining (NYSE: HL) is one of 21 publicly-traded companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it compare to its competitors? We will compare Hecla Mining to similar companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Earnings and Valuation

This table compares Hecla Mining and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hecla Mining $577.78 million -$23.51 million 36.70
Hecla Mining Competitors $1.87 billion $261.07 million 14.80



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

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Hecla Mining pays out 10.0% of its earnings in the form of a dividend. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies pay a dividend yield of 2.0% and pay out 46.8% of their earnings in the form of a dividend.

Volatility & Risk

Hecla Mining has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Hecla Mining’s competitors have a beta of 0.67, indicating that their average share price is 33% less volatile than the S&P 500.

Profitability

This table compares Hecla Mining and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hecla Mining -4.07% 2.17% 1.36%
Hecla Mining Competitors 8.93% 9.40% 4.85%

Insider & Institutional Ownership

60.0% of Hecla Mining shares are held by institutional investors. Comparatively, 59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by institutional investors. 1.5% of Hecla Mining shares are held by company insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hecla Mining and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hecla Mining 0 2 4 0 2.67
Hecla Mining Competitors 195 701 862 28 2.40

Hecla Mining currently has a consensus target price of $5.25, indicating a potential upside of 43.05%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 20.84%. Given Hecla Mining’s stronger consensus rating and higher possible upside, research analysts plainly believe Hecla Mining is more favorable than its competitors.

Summary

Hecla Mining competitors beat Hecla Mining on 9 of the 15 factors compared.

About Hecla Mining

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal deposits worldwide. The company offers zinc, lead, and bulk flotation concentrates to custom smelters and brokers; and unrefined gold and silver bullion bars to precious metals traders. It owns 100% interests in the Greens Creek mine located on Admiralty Island, Alaska; Lucky Friday mine located in northern Idaho; Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and San Sebastian mine located in the state of Durango, Mexico. Hecla Mining Company was founded in 1891 and is headquartered in Coeur d'Alene, Idaho.

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