New Gold (NYSE:NGD – Get Free Report) and Hudbay Minerals (NYSE:HBM – Get Free Report) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Risk & Volatility
New Gold has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Hudbay Minerals has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.
Earnings & Valuation
This table compares New Gold and Hudbay Minerals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Gold | $786.50 million | 2.76 | -$64.50 million | $0.02 | 137.00 |
| Hudbay Minerals | $1.69 billion | 2.17 | $66.37 million | $0.23 | 40.46 |
Profitability
This table compares New Gold and Hudbay Minerals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Gold | 2.33% | 9.38% | 3.87% |
| Hudbay Minerals | 4.03% | 6.71% | 2.89% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for New Gold and Hudbay Minerals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Gold | 0 | 2 | 3 | 2 | 3.00 |
| Hudbay Minerals | 0 | 0 | 4 | 2 | 3.33 |
New Gold presently has a consensus price target of $3.08, suggesting a potential upside of 12.41%. Hudbay Minerals has a consensus price target of $11.17, suggesting a potential upside of 20.01%. Given Hudbay Minerals’ stronger consensus rating and higher possible upside, analysts plainly believe Hudbay Minerals is more favorable than New Gold.
Insider & Institutional Ownership
42.8% of New Gold shares are held by institutional investors. Comparatively, 57.8% of Hudbay Minerals shares are held by institutional investors. 0.2% of New Gold shares are held by company insiders. Comparatively, 0.3% of Hudbay Minerals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Hudbay Minerals beats New Gold on 10 of the 14 factors compared between the two stocks.
About New Gold
New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. 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.
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