Head to Head Review: Lundin Mining (LUNMF) vs. Its Rivals

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

Earnings & Valuation

This table compares Lundin Mining and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lundin Mining	$3.39 billion	$241.56 million	25.08
Lundin Mining Competitors	$6.70 billion	$892.01 million	-12.02

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

Profitability

This table compares Lundin Mining and its rivals’ 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	-1,300.25%	-10.86%	-9.32%

Dividends

Lundin Mining pays an annual dividend of $0.28 per share and has a dividend yield of 3.1%. 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. As a group, “Metal mining” companies pay a dividend yield of 3.1% and pay out 57.3% of their earnings in the form of a dividend. Lundin Mining lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Lundin Mining has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Lundin Mining’s rivals have a beta of 1.04, indicating that their average share price is 4% more volatile than the S&P 500.

Institutional and Insider 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Lundin Mining and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	1	0	0	2.00
Lundin Mining Competitors	1252	2685	3177	137	2.30

As a group, “Metal mining” companies have a potential upside of 22.58%. Given Lundin Mining’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Lundin Mining has less favorable growth aspects than its rivals.

Summary

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

Lundin Mining Company Profile

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.