Financial Analysis: Buenaventura Mining (BVN) and Its Competitors

Buenaventura Mining (NYSE: BVN) is one of 66 publicly-traded companies in the “Gold Mining” industry, but how does it compare to its competitors? We will compare Buenaventura Mining to similar companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Buenaventura Mining -29.67% -11.11% -7.90%
Buenaventura Mining Competitors -2,793.92% -9.62% -4.57%

Risk and Volatility

Buenaventura Mining has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Buenaventura Mining’s competitors have a beta of -0.12, meaning that their average share price is 112% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Buenaventura Mining and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buenaventura Mining 0 2 1 0 2.33
Buenaventura Mining Competitors 484 1848 2173 49 2.39

Buenaventura Mining currently has a consensus price target of $17.30, suggesting a potential upside of 25.27%. As a group, “Gold Mining” companies have a potential upside of 48.16%. Given Buenaventura Mining’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Buenaventura Mining has less favorable growth aspects than its competitors.

Dividends

Buenaventura Mining pays an annual dividend of $0.05 per share and has a dividend yield of 0.4%. Buenaventura Mining pays out -3.6% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 0.9% and pay out 47.3% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Buenaventura Mining and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Buenaventura Mining $1.07 billion -$323.49 million -9.94
Buenaventura Mining Competitors $2.41 billion -$32.21 million 154.47

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

Insider and Institutional Ownership

44.8% of Buenaventura Mining shares are held by institutional investors. Comparatively, 43.6% of shares of all “Gold Mining” companies are held by institutional investors. 19.3% of Buenaventura Mining shares are held by insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are held 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.

Summary

Buenaventura Mining competitors beat Buenaventura Mining on 9 of the 14 factors compared.

Buenaventura Mining Company Profile

Compania de Minas Buenaventura S.A.A. (Buenaventura) is a precious metals company. The Company is engaged in the exploration, mining and processing of gold, silver and other metals in Peru. The Company’s segments include Production and sale of minerals; Exploration and development activities; Construction and engineering services; Energy generation and transmission services; Insurance brokerage; Rental of mining concessions; Holding of investment in shares (mainly in Minera Yanacocha S.R.L. and S.M.R.L. Chaupiloma Dos de Cajamarca), and Industrial activities. The Company operates the Orcopampa, Uchucchacua, Julcani, Mallay and Breapampa mines and has controlling interests in over three other mining companies, which operate the Colquijirca-Marcapunta, Tantahuatay and La Zanja mines. It also owns an electric power transmission company, a hydroelectric plant, a processing plant and an engineering services consulting company and non-controlling interests in various other mining companies.

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