Contrasting OR Royalties (NYSE:OR) & Lundin Mining (OTCMKTS:LUNMF)

Lundin Mining (OTCMKTS:LUNMF) and OR Royalties (NYSE:OR) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Valuation & Earnings

This table compares Lundin Mining and OR Royalties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lundin Mining	$4.05 billion	5.18	$1.28 billion	$1.73	14.26
OR Royalties	$277.37 million	23.40	$206.09 million	$1.50	23.22

Lundin Mining has higher revenue and earnings than OR Royalties. Lundin Mining is trading at a lower price-to-earnings ratio than OR Royalties, indicating that it is currently the more affordable of the two stocks.

Dividends

Lundin Mining pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. OR Royalties pays an annual dividend of $0.26 per share and has a dividend yield of 0.7%. Lundin Mining pays out 4.6% of its earnings in the form of a dividend. OR Royalties pays out 17.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OR Royalties has raised its dividend for 1 consecutive years. OR Royalties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

0.1% of Lundin Mining shares are held by institutional investors. Comparatively, 68.5% of OR Royalties shares are held by institutional investors. 0.4% of Lundin Mining shares are held by company insiders. Comparatively, 0.6% of OR Royalties shares are held by company insiders. 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.

Profitability

This table compares Lundin Mining and OR Royalties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lundin Mining	31.82%	13.18%	9.73%
OR Royalties	78.04%	16.41%	14.51%

Risk & Volatility

Lundin Mining has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Lundin Mining and OR Royalties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	8	4	0	2.33
OR Royalties	0	4	4	1	2.67

OR Royalties has a consensus price target of $41.00, indicating a potential upside of 17.74%. Given OR Royalties’ stronger consensus rating and higher possible upside, analysts clearly believe OR Royalties is more favorable than Lundin Mining.

Summary

OR Royalties beats Lundin Mining on 12 of the 17 factors compared between the two stocks.

About Lundin Mining

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, Sweden, and Argentina. It primarily produces copper, zinc, gold, nickel, and molybdenum, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex; and 51% interest in the Caserones copper-molybdenum mine located in Chile, as well as owns the copper gold Josemaria project located in Argentina. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.

About OR Royalties

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.