SunCoke Energy (NYSE:SXC – Get Free Report) and Lundin Mining (OTCMKTS:LUNMF – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
Insider & Institutional Ownership
90.4% of SunCoke Energy shares are held by institutional investors. Comparatively, 0.1% of Lundin Mining shares are held by institutional investors. 1.7% of SunCoke Energy shares are held by company insiders. Comparatively, 0.4% of Lundin Mining shares are held by company 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.
Risk and Volatility
SunCoke Energy has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for SunCoke Energy and Lundin Mining, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SunCoke Energy | 0 | 2 | 0 | 0 | 2.00 |
| Lundin Mining | 0 | 7 | 4 | 1 | 2.50 |
SunCoke Energy currently has a consensus price target of $11.00, suggesting a potential upside of 2.85%. Given SunCoke Energy’s higher possible upside, equities research analysts clearly believe SunCoke Energy is more favorable than Lundin Mining.
Profitability
This table compares SunCoke Energy and Lundin Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SunCoke Energy | -2.91% | 5.68% | 2.01% |
| Lundin Mining | 32.52% | 14.25% | 10.68% |
Dividends
SunCoke Energy pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. Lundin Mining pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. SunCoke Energy pays out -73.8% of its earnings in the form of a dividend. Lundin Mining pays out 3.9% 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. SunCoke Energy has raised its dividend for 4 consecutive years. SunCoke Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares SunCoke Energy and Lundin Mining”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SunCoke Energy | $1.90 billion | 0.48 | -$44.20 million | ($0.65) | -16.45 |
| Lundin Mining | $4.05 billion | 4.52 | $1.28 billion | $1.81 | 11.89 |
Lundin Mining has higher revenue and earnings than SunCoke Energy. SunCoke Energy is trading at a lower price-to-earnings ratio than Lundin Mining, indicating that it is currently the more affordable of the two stocks.
Summary
Lundin Mining beats SunCoke Energy on 12 of the 18 factors compared between the two stocks.
About SunCoke Energy
SunCoke Energy, Inc. produces coke, a key fuel and carbon input used in blast furnace steelmaking. Its heat-recovery cokemaking process captures heat generated during production for use in generating steam and electricity. The company also provides coal-handling and logistics services, including coal blending, transportation, and the operation of export and transloading terminals. These services support the movement of coal and other bulk materials for steelmakers and other customers. SunCoke was spun off from Sunoco in 2012.
About Lundin Mining
Lundin Mining is a Canadian mining company headquartered in Vancouver, focused primarily on the exploration, development and production of copper. Its operations in South America include the Candelaria and Caserones mines in Chile and the Chapada mine in Brazil. The company’s principal product is copper, with gold, silver and molybdenum also produced as by-products at some of its operations. Lundin Mining is also involved in developing the Vicuña district, a copper, gold and silver project spanning Argentina and Chile, through a joint venture with BHP.
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