MMG (MMLTF) versus The Competition Critical Analysis

Insider & Institutional Ownership

3.7% of MMG shares are held by institutional investors. Comparatively, 48.7% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 19.5% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares MMG and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MMG	N/A	N/A	N/A
MMG Competitors	-2.27%	-39.13%	2.85%

Dividends

MMG pays an annual dividend of $0.01 per share and has a dividend yield of 1.0%. MMG pays out 45.0% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 5.6% and pay out 45.2% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares MMG and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MMG	N/A	N/A	46.33
MMG Competitors	$3.59 billion	$217.14 million	15.86

MMG’s competitors have higher revenue and earnings than MMG. MMG is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

MMG competitors beat MMG on 5 of the 9 factors compared.

About MMG

MMG Limited, an investment holding company, engages in the exploration, development, and mining of copper, zinc, gold, silver, molybdenum, cobalt, and lead deposits in Australia and internationally. It operates through Las Bambas, Kinsevere, Dugald River, Rosebery, and Other segments. The company holds a 62.5% interest in the Las Bambas open-pit copper and molybdenum mine located in Cotabambas, Apurimac region of Peru; and 100% interest in the Kinsevere open-pit copper mine in the Haut-Katanga province of the Democratic Republic of the Congo. It also holds a 100% interest in the Dugald River underground zinc mine located near Cloncurry in North West Queensland; and the Rosebery underground polymetallic base metal mine located on Tasmania's west coast. The company was formerly known as Minmetals Resources Limited and changed its name to MMG Limited in September 2012. The company was incorporated in 1988 and is headquartered in Southbank, Australia. MMG Limited operates as a subsidiary of China Minmetals H.K. (Holdings) Limited.