Jaguar Mining (OTCMKTS:JAGGD) vs. Lundin Mining (OTC:LUNMF) Financial Review

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

Insider & Institutional Ownership

0.1% of Lundin Mining shares are owned by institutional investors. 0.4% of Lundin Mining shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Jaguar Mining pays an annual dividend of $0.25 per share and has a dividend yield of 11.8%. Lundin Mining pays an annual dividend of $0.28 per share and has a dividend yield of 3.2%. Jaguar Mining pays out 49.0% of its earnings in the form of a dividend. Lundin Mining pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jaguar Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Jaguar Mining and Lundin Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	28.17%	26.75%	17.80%
Lundin Mining	6.63%	5.02%	2.92%

Earnings and Valuation

This table compares Jaguar Mining and Lundin Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$97.23 million	1.54	-$150,000.00	$0.50	4.14
Lundin Mining	$3.39 billion	2.23	$241.56 million	$0.36	24.17

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Jaguar Mining and Lundin Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
Lundin Mining	0	1	0	0	2.00

Volatility & Risk

Jaguar Mining has a beta of 2.75, indicating that its stock price is 175% more volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

About Jaguar Mining

Jaguar Mining, Inc. engages in the acquisition, exploration, development and operation of gold producing properties in Brazil. Its mining operations include Turmalina, Paciência and Caeté. The firm is also developing the Grurupi Project and exploring the Iron Quadrangle and Pedra Branca Project. The company was founded by Daniel R. Titcomb in 1984 and is headquartered Toronto, Canada.

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.