Vedanta Resources (OTCMKTS: VDNRF) and McEwen Mining (NYSE:MUX) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
This table compares Vedanta Resources and McEwen Mining’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Vedanta Resources and McEwen Mining, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
McEwen Mining has a consensus price target of $4.00, indicating a potential upside of 86.05%. Given McEwen Mining’s higher possible upside, analysts clearly believe McEwen Mining is more favorable than Vedanta Resources.
Vedanta Resources pays an annual dividend of $1.44 per share and has a dividend yield of 15.0%. McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. McEwen Mining pays out -16.7% of its earnings in the form of a dividend.
Volatility & Risk
Vedanta Resources has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, McEwen Mining has a beta of -1.09, suggesting that its stock price is 209% less volatile than the S&P 500.
Valuation and Earnings
This table compares Vedanta Resources and McEwen Mining’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vedanta Resources||$11.52 billion||0.23||-$22.70 million||N/A||N/A|
|McEwen Mining||$67.72 million||10.70||-$10.63 million||($0.06)||-35.83|
McEwen Mining has lower revenue, but higher earnings than Vedanta Resources.
Insider and Institutional Ownership
29.3% of McEwen Mining shares are held by institutional investors. 26.1% of McEwen Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
McEwen Mining beats Vedanta Resources on 7 of the 13 factors compared between the two stocks.
Vedanta Resources Company Profile
Vedanta Resources plc is a natural resources company, which is engaged in exploring, extracting and processing minerals, and oil and gas. The Company produces zinc, lead, silver, copper, aluminum, iron ore, oil and gas, and commercial power. Its operations are located in India, Zambia, Namibia, South Africa, Liberia, Ireland, Australia and the United Arab Emirates. Its segments include Zinc-India, Zinc-International, Oil & Gas, Iron Ore, Copper-India/Australia, Copper-Zambia, Aluminium and Power. Its geographical segments include India, China, Far East Asia, Middle East, Europe, Africa, Asia Others, UK and Others. Its Copper business includes a copper smelter, over two refineries and over two copper rod plants in India; a copper mine in Australia, and an integrated operation in Zambia consisting of approximately three mines, a leaching plant and a smelter. The Company’s oil and gas operations consist of the assets of Cairn India Limited in India, Sri Lanka and South Africa.
McEwen Mining Company Profile
McEwen Mining Inc. is a mining and minerals production and exploration company. The Company is focused on precious and base metals in Argentina, Mexico and the United States. The Company’s segments include Mexico, Minera Santa Cruz S.A. (MSC), Nevada and Los Azules. The Mexico Operations segment includes properties, such as El Gallo 1 mine and the El Gallo 2 project. The MSC segment includes properties, such as the San Jose mine and other concessions located around the mine. The Company’s properties in Nevada segment include Gold Bar project and exploration properties. The Gold Bar project is a proposed mine project. The Los Azules segment includes various properties, such as Los Azules project, Chonchones project, Laganoso project, La Cerrada project and Other Argentina properties. The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile.
Receive News & Ratings for Vedanta Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vedanta Resources and related companies with MarketBeat.com's FREE daily email newsletter.