Kaiser Aluminum (NASDAQ:KALU – Get Free Report) and Lundin Mining (OTCMKTS:LUNMF – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Dividends
Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 3.0%. Lundin Mining pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Kaiser Aluminum pays out 23.8% of its earnings in the form of a dividend. Lundin Mining pays out 4.0% 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.
Earnings & Valuation
This table compares Kaiser Aluminum and Lundin Mining”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kaiser Aluminum | $3.37 billion | 0.50 | $112.50 million | $12.95 | 7.96 |
| Lundin Mining | $4.05 billion | 4.18 | $1.28 billion | $1.73 | 11.49 |
Lundin Mining has higher revenue and earnings than Kaiser Aluminum. Kaiser Aluminum is trading at a lower price-to-earnings ratio than Lundin Mining, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kaiser Aluminum and Lundin Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kaiser Aluminum | 4.85% | 23.65% | 7.66% |
| Lundin Mining | 31.82% | 13.18% | 9.73% |
Insider and Institutional Ownership
99.3% of Kaiser Aluminum shares are held by institutional investors. Comparatively, 0.1% of Lundin Mining shares are held by institutional investors. 1.3% of Kaiser Aluminum shares are held by insiders. Comparatively, 0.4% of Lundin Mining shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Kaiser Aluminum has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Kaiser Aluminum and Lundin Mining, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kaiser Aluminum | 0 | 3 | 4 | 0 | 2.57 |
| Lundin Mining | 0 | 8 | 4 | 0 | 2.33 |
Kaiser Aluminum currently has a consensus target price of $141.00, indicating a potential upside of 36.84%. Given Kaiser Aluminum’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Kaiser Aluminum is more favorable than Lundin Mining.
Summary
Kaiser Aluminum beats Lundin Mining on 8 of the 15 factors compared between the two stocks.
About Kaiser Aluminum
Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company's automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company's general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.
About Lundin Mining
Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, Sweden, and Argentina. It primarily produces copper, zinc, gold, nickel, and molybdenum, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex; and 51% interest in the Caserones copper-molybdenum mine located in Chile, as well as owns the copper gold Josemaria project located in Argentina. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.
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