HudBay Minerals (NYSE:HBM – Get Free Report) and OR Royalties (NYSE:OR – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
57.8% of HudBay Minerals shares are held by institutional investors. Comparatively, 68.5% of OR Royalties shares are held by institutional investors. 0.3% of HudBay Minerals shares are held by insiders. Comparatively, 0.6% of OR Royalties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations for HudBay Minerals and OR Royalties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HudBay Minerals | 0 | 2 | 10 | 2 | 3.00 |
| OR Royalties | 0 | 4 | 5 | 1 | 2.70 |
Dividends
HudBay Minerals pays an annual dividend of $0.03 per share and has a dividend yield of 0.1%. OR Royalties pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. HudBay Minerals pays out 1.8% of its earnings in the form of a dividend. OR Royalties pays out 16.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OR Royalties has increased its dividend for 1 consecutive years. OR Royalties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares HudBay Minerals and OR Royalties”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HudBay Minerals | $2.21 billion | 4.99 | $568.50 million | $1.66 | 16.74 |
| OR Royalties | $277.37 million | 22.87 | $206.09 million | $1.34 | 25.24 |
HudBay Minerals has higher revenue and earnings than OR Royalties. HudBay Minerals is trading at a lower price-to-earnings ratio than OR Royalties, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares HudBay Minerals and OR Royalties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HudBay Minerals | 27.75% | 10.04% | 5.36% |
| OR Royalties | 78.09% | 15.10% | 13.77% |
Risk and Volatility
HudBay Minerals has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Summary
OR Royalties beats HudBay Minerals on 10 of the 18 factors compared between the two stocks.
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.
About OR Royalties
Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.
Receive News & Ratings for HudBay Minerals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for HudBay Minerals and related companies with MarketBeat.com's FREE daily email newsletter.
