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Sisecam Resources (NYSE:SIRE) & Hecla Mining (NYSE:HL) Critical Contrast

Defense World ·  Dec 30, 2022 03:22

Hecla Mining (NYSE:HL – Get Rating) and Sisecam Resources (NYSE:SIRE – Get Rating) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Hecla Mining and Sisecam Resources' net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Hecla Mining -2.96% 1.35% 0.88%
Sisecam Resources 8.33% 16.33% 9.94%

Institutional and Insider Ownership

59.7% of Hecla Mining shares are owned by institutional investors. Comparatively, 5.7% of Sisecam Resources shares are owned by institutional investors. 1.6% of Hecla Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Hecla Mining has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Sisecam Resources has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Sisecam Resources pays an annual dividend of $2.00 per share and has a dividend yield of 9.5%. Hecla Mining pays out -25.0% of its earnings in the form of a dividend. Sisecam Resources pays out 69.9% 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.

Valuation & Earnings

This table compares Hecla Mining and Sisecam Resources' top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hecla Mining $807.47 million 4.20 $35.10 million ($0.04) -139.97
Sisecam Resources $540.10 million 0.77 $24.40 million $2.86 7.35

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Hecla Mining and Sisecam Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hecla Mining 0 1 5 0 2.83
Sisecam Resources 0 0 0 0 N/A

Hecla Mining currently has a consensus price target of $5.88, indicating a potential upside of 4.91%. Given Hecla Mining's higher possible upside, equities analysts plainly believe Hecla Mining is more favorable than Sisecam Resources.

Summary

Hecla Mining beats Sisecam Resources on 9 of the 15 factors compared between the two stocks.

About Hecla Mining

(Get Rating)

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for sale to custom smelters, metal traders, and third-party processors,; and doré containing silver and gold. It owns 100% interests in the Greens Creek mine located on Admiralty Island in southeast Alaska; the Lucky Friday mine situated in northern Idaho; the Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and the San Sebastian mine situated in the city of Durango, Mexico. The company also holds 100% interests in the Fire Creek mine located in Lander County, Nevada; and the Hollister and Midas mines situated in Elko County, Nevada. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.

About Sisecam Resources

(Get Rating)

Sisecam Resources LP, together with its subsidiaries, engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. The company holds approximately 23,500 acres of leased and licensed subsurface mining areas in the Green River Basin of Wyoming. As of December 31, 2021, it had proven and probable reserves of approximately 220.0 million short tons of trona. The company was formerly known as Ciner Resources LP and changed its name to Sisecam Resources LP in February 2022. Sisecam Resources LP was incorporated in 2013 and is headquartered in Atlanta, Georgia. Sisecam Resources LP operates as a subsidiary of Ciner Wyoming Holding Co.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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