Atlatsa Resources (OTCMKTS:ATLRF) and Hudbay Minerals (NYSE:HBM) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares Atlatsa Resources and Hudbay Minerals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlatsa Resources $4.26 million 7.33 -$72.56 million N/A N/A
Hudbay Minerals $1.47 billion 0.94 $85.42 million $0.39 13.51

Hudbay Minerals has higher revenue and earnings than Atlatsa Resources.

Risk & Volatility

Atlatsa Resources has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500. Comparatively, Hudbay Minerals has a beta of 2.9, suggesting that its share price is 190% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Atlatsa Resources and Hudbay Minerals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlatsa Resources 0 0 0 0 N/A
Hudbay Minerals 0 5 4 0 2.44

Hudbay Minerals has a consensus target price of $8.38, indicating a potential upside of 58.92%. Given Hudbay Minerals’ higher possible upside, analysts clearly believe Hudbay Minerals is more favorable than Atlatsa Resources.

Profitability

This table compares Atlatsa Resources and Hudbay Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlatsa Resources N/A N/A -52.34%
Hudbay Minerals 2.22% 3.07% 1.42%

Insider & Institutional Ownership

64.8% of Hudbay Minerals shares are owned by institutional investors. 7.5% of Atlatsa Resources shares are owned by 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.

Dividends

Hudbay Minerals pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Atlatsa Resources does not pay a dividend. Hudbay Minerals pays out 5.1% of its earnings in the form of a dividend.

Summary

Hudbay Minerals beats Atlatsa Resources on 10 of the 13 factors compared between the two stocks.

About Atlatsa Resources

Atlatsa Resources Corporation, together with its subsidiaries, engages in the exploration and mining of platinum group metal properties in the Republic of South Africa. The company was formerly known as Anooraq Resources Corporation and changed its name to Atlatsa Resources Corporation in May 2012. The company was incorporated in 1983 and is headquartered in Johannesburg, South Africa. Atlatsa Resources Corporation is a subsidiary of Atlatsa Holdings Proprietary Limited.

About Hudbay Minerals

Hudbay Minerals Inc., an integrated mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; and zinc metal. The company owns three polymetallic mines, four ore concentrators, and a zinc production facility in northern Manitoba and Saskatchewan, Canada, as well as in Cusco, Peru; and copper projects in Arizona and Nevada, the United States. HudBay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.

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