Critical Analysis: Energizer Resources (OTCMKTS:NSRCF) vs. HudBay Minerals (NYSE:HBM)

Energizer Resources (OTCMKTS:NSRCF) and HudBay Minerals (NYSE:HBM) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Valuation & Earnings

This table compares Energizer Resources and HudBay Minerals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energizer Resources	$710,000.00	61.11	-$23.26 million	($0.19)	-1.23
HudBay Minerals	$2.21 billion	4.78	$568.50 million	$1.66	16.04

HudBay Minerals has higher revenue and earnings than Energizer Resources. Energizer Resources is trading at a lower price-to-earnings ratio than HudBay Minerals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Energizer Resources has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, HudBay Minerals has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Energizer Resources and HudBay Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energizer Resources	0	0	0	1	4.00
HudBay Minerals	0	2	10	2	3.00

HudBay Minerals has a consensus target price of $27.33, suggesting a potential upside of 2.68%. Given HudBay Minerals’ higher probable upside, analysts plainly believe HudBay Minerals is more favorable than Energizer Resources.

Insider & Institutional Ownership

57.8% of HudBay Minerals shares are held by institutional investors. 4.6% of Energizer Resources shares are held by insiders. Comparatively, 0.3% of HudBay Minerals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Energizer Resources and HudBay Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energizer Resources	-3,149.65%	-89.77%	-34.88%
HudBay Minerals	27.75%	10.04%	5.36%

Summary

HudBay Minerals beats Energizer Resources on 12 of the 15 factors compared between the two stocks.

About Energizer Resources

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.

About HudBay Minerals

Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.