Contrasting Metals Acquisition (NYSE:MTAL) and Hudbay Minerals (NYSE:HBM)

Metals Acquisition (NYSE:MTAL) and Hudbay Minerals (NYSE:HBM) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Volatility & Risk

Metals Acquisition has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Hudbay Minerals has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Valuation & Earnings

This table compares Metals Acquisition and Hudbay Minerals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metals Acquisition	$340.74 million	2.20	-$144.55 million	N/A	N/A
Hudbay Minerals	$2.02 billion	1.41	$66.37 million	$0.18	40.14

Hudbay Minerals has higher revenue and earnings than Metals Acquisition.

Institutional and Insider Ownership

87.5% of Metals Acquisition shares are held by institutional investors. Comparatively, 57.8% of Hudbay Minerals shares are held by institutional investors. 1.8% of Metals Acquisition shares are held by insiders. Comparatively, 0.3% of Hudbay Minerals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Metals Acquisition and Hudbay Minerals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metals Acquisition	0	1	1	0	2.50
Hudbay Minerals	0	0	4	2	3.33

Metals Acquisition currently has a consensus price target of $14.75, indicating a potential upside of 45.68%. Hudbay Minerals has a consensus price target of $11.17, indicating a potential upside of 54.56%. Given Hudbay Minerals’ stronger consensus rating and higher probable upside, analysts plainly believe Hudbay Minerals is more favorable than Metals Acquisition.

Profitability

This table compares Metals Acquisition and Hudbay Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metals Acquisition	N/A	N/A	N/A
Hudbay Minerals	3.80%	7.29%	3.35%

Summary

Hudbay Minerals beats Metals Acquisition on 10 of the 13 factors compared between the two stocks.

About Metals Acquisition

Metals Acquisition Limited focuses on mining and production of copper and silver. It operates the CSA copper mine in Cobar, Australia. The company was incorporated in 2022 and is headquartered in Saint Helier, Jersey.

About Hudbay Minerals

Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.