Head to Head Contrast: Perpetua Resources (NASDAQ:PPTA) versus HudBay Minerals (NYSE:HBM)

Perpetua Resources (NASDAQ:PPTA) and HudBay Minerals (NYSE:HBM) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

70.1% of Perpetua Resources shares are owned by institutional investors. Comparatively, 57.8% of HudBay Minerals shares are owned by institutional investors. 1.5% of Perpetua Resources shares are owned by company insiders. Comparatively, 0.3% of HudBay Minerals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Perpetua Resources and HudBay Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perpetua Resources	N/A	-14.14%	-13.71%
HudBay Minerals	25.71%	8.91%	4.56%

Valuation & Earnings

This table compares Perpetua Resources and HudBay Minerals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perpetua Resources	N/A	N/A	-$14.48 million	($0.50)	-62.62
HudBay Minerals	$2.21 billion	3.92	$568.50 million	$1.43	15.26

HudBay Minerals has higher revenue and earnings than Perpetua Resources. Perpetua Resources is trading at a lower price-to-earnings ratio than HudBay Minerals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Perpetua Resources has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, HudBay Minerals has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Perpetua Resources and HudBay Minerals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perpetua Resources	1	0	6	1	2.88
HudBay Minerals	0	2	12	2	3.00

Perpetua Resources presently has a consensus target price of $32.50, indicating a potential upside of 3.80%. HudBay Minerals has a consensus target price of $26.00, indicating a potential upside of 19.12%. Given HudBay Minerals’ stronger consensus rating and higher probable upside, analysts clearly believe HudBay Minerals is more favorable than Perpetua Resources.

Summary

HudBay Minerals beats Perpetua Resources on 12 of the 14 factors compared between the two stocks.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.

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.