Lundin Mining (LUNMF) vs. Its Competitors Financial Review

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

Analyst Ratings

This is a breakdown of recent recommendations for Lundin Mining and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	1	0	0	2.00
Lundin Mining Competitors	1249	2681	3174	135	2.30

As a group, “Metal mining” companies have a potential upside of 26.33%. Given Lundin Mining’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Lundin Mining has less favorable growth aspects than its competitors.

Risk & Volatility

Lundin Mining has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Lundin Mining’s competitors have a beta of 1.03, meaning that their average share price is 3% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lundin Mining	$3.39 billion	$241.56 million	23.67
Lundin Mining Competitors	$6.72 billion	$854.60 million	0.58

Lundin Mining’s competitors have higher revenue and earnings than Lundin Mining. Lundin 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

Lundin Mining pays an annual dividend of $0.27 per share and has a dividend yield of 3.2%. Lundin Mining pays out 75.0% 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 3.4% and pay out 51.0% of their earnings in the form of a dividend. Lundin Mining lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Lundin Mining and its competitors’ 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%

Insider & Institutional Ownership

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

Summary

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

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.