Jaguar Mining (OTCMKTS:JAGGF) and Southern Copper (NYSE:SCCO) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Dividends

Southern Copper pays an annual dividend of $1.60 per share and has a dividend yield of 4.1%. Jaguar Mining does not pay a dividend. Southern Copper pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southern Copper has raised its dividend for 2 consecutive years.

Risk and Volatility

Jaguar Mining has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Southern Copper has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Jaguar Mining and Southern Copper, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jaguar Mining 0 0 0 0 N/A
Southern Copper 2 4 5 0 2.27

Southern Copper has a consensus price target of $41.83, indicating a potential upside of 6.58%. Given Southern Copper’s higher possible upside, analysts plainly believe Southern Copper is more favorable than Jaguar Mining.

Earnings & Valuation

This table compares Jaguar Mining and Southern Copper’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jaguar Mining $94.92 million 0.42 -$15.97 million N/A N/A
Southern Copper $7.10 billion 4.28 $1.54 billion $2.00 19.63

Southern Copper has higher revenue and earnings than Jaguar Mining.

Institutional and Insider Ownership

19.6% of Jaguar Mining shares are owned by institutional investors. Comparatively, 6.8% of Southern Copper shares are owned by institutional investors. 0.5% of Southern Copper shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Jaguar Mining and Southern Copper’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jaguar Mining -17.59% -6.36% -3.90%
Southern Copper 20.84% 22.04% 10.00%

Summary

Southern Copper beats Jaguar Mining on 11 of the 14 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining Inc. engages in the acquisition, exploration, development, and operation of gold producing properties in Brazil. Its principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex located in the Iron Quadrangle in the state of Minas Gerais. The company was founded in 1984 and is headquartered in Toronto, Canada.

About Southern Copper

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and three SX-EW plants in Mexico. In addition, it operates five underground mines that produce zinc, lead, copper, silver, and gold; a coal mine that produces coal and coke; and a zinc refinery. The company has interests in 37,622 hectares of exploration concessions in Peru; 147,974 hectares of exploration concessions in Mexico; 63,453 hectares of exploration concessions in Argentina; 42,615 hectares of exploration concessions in Chile; and 7,298 hectares of exploration concessions in Ecuador. Southern Copper Corporation was founded in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.

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