Turquoise Hill Resources (NYSE:TRQ) and Compania de Minas Buenaventura SAA (NYSE:BVN) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares Turquoise Hill Resources and Compania de Minas Buenaventura SAA’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Turquoise Hill Resources||$939.78 million||3.85||$181.24 million||N/A||N/A|
|Compania de Minas Buenaventura SAA||$1.27 billion||2.76||$60.82 million||$0.37||37.46|
This table compares Turquoise Hill Resources and Compania de Minas Buenaventura SAA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turquoise Hill Resources||33.28%||4.41%||2.77%|
|Compania de Minas Buenaventura SAA||5.28%||3.31%||2.38%|
Volatility and Risk
Turquoise Hill Resources has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Compania de Minas Buenaventura SAA has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Compania de Minas Buenaventura SAA pays an annual dividend of $0.06 per share and has a dividend yield of 0.4%. Turquoise Hill Resources does not pay a dividend. Compania de Minas Buenaventura SAA pays out 16.2% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for Turquoise Hill Resources and Compania de Minas Buenaventura SAA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turquoise Hill Resources||0||0||1||0||3.00|
|Compania de Minas Buenaventura SAA||0||1||1||0||2.50|
Compania de Minas Buenaventura SAA has a consensus price target of $16.00, suggesting a potential upside of 15.44%. Given Compania de Minas Buenaventura SAA’s higher possible upside, analysts plainly believe Compania de Minas Buenaventura SAA is more favorable than Turquoise Hill Resources.
Insider & Institutional Ownership
35.1% of Turquoise Hill Resources shares are owned by institutional investors. Comparatively, 51.5% of Compania de Minas Buenaventura SAA shares are owned by institutional investors. 19.3% of Compania de Minas Buenaventura SAA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Turquoise Hill Resources beats Compania de Minas Buenaventura SAA on 8 of the 14 factors compared between the two stocks.
Turquoise Hill Resources Company Profile
Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company explores for copper, gold, silver, and molybdenum deposits. It primarily develops and operates the Oyu Tolgoi mine located in the southern Mongolia. The company was formerly known as Ivanhoe Mines Ltd. and changed its name to Turquoise Hill Resources Ltd. in August 2012. Turquoise Hill Resources Ltd. was founded in 1994 and is headquartered in Vancouver, Canada.
Compania de Minas Buenaventura SAA Company Profile
Compañía de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru, the United States, Europe, and Asia. The company operates five operating mining units, including Uchucchacua, Orcopampa, Julcani, Mallay, and Tambomayo in Peru; and San Gabriel, a mining unit under development stage. It also owns interests in Colquijirca-Marcapunta, Tantahuatay, La Zanja, Yanacocha, Cerro Verde, Yumpag, Daniela, Ccelloccasa, San Gregorio, and Tambomayo mines, as well as Trapiche, a mining unit at the development stage. In addition, the company produces manganese sulphate, which is used in agriculture and mining industries. Further, it provides geological, engineering, design, and construction consulting services to the mining sector; electrical transmission services; and energy generation services through hydroelectric power plants, as well as processes chemicals. The company was founded in 1953 and is based in Lima, Peru.
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