Critical Contrast: Buenaventura Mining (BVN) versus Its Rivals

Buenaventura Mining (NYSE:BVN) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it compare to its competitors? We will compare Buenaventura Mining to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Risk & Volatility

Buenaventura Mining has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Buenaventura Mining’s competitors have a beta of 0.99, indicating that their average share price is 1% less volatile than the S&P 500.

Insider and Institutional Ownership

16.1% of shares of all “Metals & Mining” companies are held by institutional investors. 19.3% of Buenaventura Mining shares are held by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Buenaventura Mining and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Buenaventura Mining	$1.73 billion	$782.15 million	5.99
Buenaventura Mining Competitors	$4.77 billion	$278.94 million	-44.95

Buenaventura Mining’s competitors have higher revenue, but lower earnings than Buenaventura Mining. Buenaventura Mining is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Buenaventura Mining and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Buenaventura Mining	0	2	2	0	2.50
Buenaventura Mining Competitors	6404	22596	32293	1796	2.47

Buenaventura Mining presently has a consensus price target of $37.25, suggesting a potential upside of 31.68%. As a group, “Metals & Mining” companies have a potential upside of 28.35%. Given Buenaventura Mining’s stronger consensus rating and higher possible upside, equities analysts plainly believe Buenaventura Mining is more favorable than its competitors.

Profitability

This table compares Buenaventura Mining and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Buenaventura Mining	51.78%	27.60%	19.61%
Buenaventura Mining Competitors	-1,168,050,136,845,918,000.00%	-53.16%	-2.09%

Dividends

Buenaventura Mining pays an annual dividend of $1.09 per share and has a dividend yield of 3.9%. Buenaventura Mining pays out 23.1% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.3% and pay out 10.8% of their earnings in the form of a dividend. Buenaventura Mining lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Buenaventura Mining beats its competitors on 8 of the 15 factors compared.

About Buenaventura Mining

Compañía de Minas Buenaventura S.A.A. engages in the exploration, development, construction, and operation of mineral processing business. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company owns interests in Colquijirca, La Zanja, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces monohydrate manganese sulphate; and operates hydroelectric power plants. Compañía de Minas Buenaventura S.A.A. was incorporated in 1953 and is based in Lima, Peru.