Financial Review: HudBay Minerals (NYSE:HBM) & First Colombia Gold (OTCMKTS:FCGD)

HudBay Minerals (NYSE:HBM) and First Colombia Gold (OTCMKTS:FCGD) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Profitability

This table compares HudBay Minerals and First Colombia Gold’s 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%
First Colombia Gold	N/A	N/A	N/A

Institutional and Insider Ownership

57.8% of HudBay Minerals shares are held by institutional investors. 0.3% of HudBay Minerals shares are held by insiders. Comparatively, 0.0% of First Colombia Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

HudBay Minerals has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, First Colombia Gold has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for HudBay Minerals and First Colombia Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HudBay Minerals	0	2	10	2	3.00
First Colombia Gold	0	0	0	0	0.00

HudBay Minerals presently has a consensus target price of $27.33, indicating a potential downside of 7.64%. Given First Colombia Gold’s higher possible upside, analysts clearly believe First Colombia Gold is more favorable than HudBay Minerals.

Earnings and Valuation

This table compares HudBay Minerals and First Colombia Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HudBay Minerals	$2.21 billion	5.32	$568.50 million	$1.66	17.83
First Colombia Gold	N/A	N/A	N/A	N/A	N/A

HudBay Minerals has higher revenue and earnings than First Colombia Gold.

Summary

HudBay Minerals beats First Colombia Gold on 10 of the 11 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 First Colombia Gold

First Colombia Gold Corp. engages in the exploration and production of oil and gas properties. The company operates through Energy and Mining divisions. It holds interests in 96 oil wells with a gross acreage of 4,302 acres in the counties of Cumberland, Monroe, Overton, and Clinton. The company is also involved in the precious minerals exploration business. It owns 2 unpatented mining claims in the Skip Silver prospect covering an area of approximately 40 acres in central Montana. The company was formerly known as Amazon Goldsands Ltd. and changed its name to First Colombia Gold Corp. in November 2010. First Colombia Gold Corp. was founded in 1997 and is based in Nashville, Tennessee.