Hecla Mining (NYSE:HL) and Kaiser Aluminum (NASDAQ:KALU) Critical Comparison

Hecla Mining (NYSE:HL) and Kaiser Aluminum (NASDAQ:KALU) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Risk and Volatility

Hecla Mining has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Kaiser Aluminum has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hecla Mining and Kaiser Aluminum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hecla Mining	$1.42 billion	6.53	$321.71 million	$0.49	28.25
Kaiser Aluminum	$3.37 billion	0.52	$112.50 million	$13.49	7.95

Hecla Mining has higher earnings, but lower revenue than Kaiser Aluminum. Kaiser Aluminum is trading at a lower price-to-earnings ratio than Hecla Mining, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hecla Mining and Kaiser Aluminum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hecla Mining	1	5	4	0	2.30
Kaiser Aluminum	1	2	4	0	2.43

Hecla Mining presently has a consensus price target of $23.34, suggesting a potential upside of 68.63%. Kaiser Aluminum has a consensus price target of $162.40, suggesting a potential upside of 51.38%. Given Hecla Mining’s higher probable upside, equities research analysts clearly believe Hecla Mining is more favorable than Kaiser Aluminum.

Profitability

This table compares Hecla Mining and Kaiser Aluminum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hecla Mining	20.84%	18.91%	14.58%
Kaiser Aluminum	4.85%	23.65%	7.66%

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 2.9%. Hecla Mining pays out 2.0% of its earnings in the form of a dividend. Kaiser Aluminum pays out 22.8% 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.

Institutional & Insider Ownership

63.0% of Hecla Mining shares are owned by institutional investors. Comparatively, 99.3% of Kaiser Aluminum shares are owned by institutional investors. 0.7% of Hecla Mining shares are owned by insiders. Comparatively, 1.3% of Kaiser Aluminum shares are owned by 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.

Summary

Kaiser Aluminum beats Hecla Mining on 8 of the 15 factors compared between the two stocks.

About Hecla Mining

Hecla Mining Company, together with its subsidiaries, provides precious and base metal properties in the United States, Canada, Japan, Korea, and China. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for custom smelters, metal traders, and third-party processors; and doré containing silver and gold. It flagship project is the Greens Creek mine located on Admiralty Island in southeast Alaska. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.

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.