Blue Gem Enterprise (OTCMKTS:BGEM) & Hudbay Minerals (NYSE:HBM) Critical Contrast

Hudbay Minerals (NYSE:HBM) and Blue Gem Enterprise (OTCMKTS:BGEM) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Institutional & Insider Ownership

61.7% of Hudbay Minerals shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hudbay Minerals and Blue Gem Enterprise’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hudbay Minerals $1.24 billion 1.42 -$343.81 million ($0.19) -35.47
Blue Gem Enterprise N/A N/A N/A N/A N/A

Blue Gem Enterprise has lower revenue, but higher earnings than Hudbay Minerals.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hudbay Minerals and Blue Gem Enterprise, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudbay Minerals 1 3 6 0 2.50
Blue Gem Enterprise 0 0 0 0 N/A

Hudbay Minerals presently has a consensus target price of $8.72, suggesting a potential upside of 29.35%. Given Hudbay Minerals’ higher probable upside, analysts clearly believe Hudbay Minerals is more favorable than Blue Gem Enterprise.

Profitability

This table compares Hudbay Minerals and Blue Gem Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudbay Minerals -14.02% -7.32% -2.87%
Blue Gem Enterprise N/A N/A N/A

Risk and Volatility

Hudbay Minerals has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500. Comparatively, Blue Gem Enterprise has a beta of 3, meaning that its stock price is 200% more volatile than the S&P 500.

About Hudbay Minerals

Hudbay Minerals Inc., a diversified 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; molybdenum concentrates; and zinc metals. 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 headquartered in Toronto, Canada.

About Blue Gem Enterprise

Blue Gem Enterprise, Inc., through its subsidiaries, engages in full service direct store beverage distribution activities in Florida, the United States. The company manages and distributes select allied brands, including the Title Sports Drink for food and beverage manufacturers pursuant to exclusive agreements with manufacturers. It distributes various non-alcohol beverages, such as ice teas, juices, nutritional shakes, energy shots, and sports drinks, as well as food products. The company also distributes refrigerated dairy products, fresh produce, and food and beverages, including milk; fruits, such as watermelon; nut and snack bars under the Wings of Nature Bars brand name; Apple Rush, an apple flavored fruit beverage; Xingtea, a tea beverage; and Myoplex, a shake. It serves independent retail stores and chain stores. Blue Gem Enterprise, Inc. is based in Opa-locka, Florida.

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