Head-To-Head Contrast: Lundin Mining (OTC:LUNMF) vs. Jaguar Mining (OTCMKTS:JAGGD)

Lundin Mining (OTC:LUNMF) and Jaguar Mining (OTCMKTS:JAGGD) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Insider & Institutional Ownership

0.1% of Lundin Mining shares are held by institutional investors. 0.4% of Lundin Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Lundin Mining has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 2.75, meaning that its share price is 175% more volatile than the S&P 500.

Profitability

This table compares Lundin Mining and Jaguar Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lundin Mining	6.63%	5.02%	2.92%
Jaguar Mining	28.17%	26.75%	17.80%

Dividends

Lundin Mining pays an annual dividend of $0.27 per share and has a dividend yield of 3.2%. Jaguar Mining pays an annual dividend of $0.25 per share and has a dividend yield of 12.5%. Lundin Mining pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jaguar Mining pays out 49.0% of its earnings in the form of a dividend. Jaguar Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Lundin Mining and Jaguar Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	1	0	0	2.00
Jaguar Mining	0	0	0	0	0.00

Valuation & Earnings

This table compares Lundin Mining and Jaguar Mining”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lundin Mining	$3.39 billion	2.18	$241.56 million	$0.36	23.67
Jaguar Mining	$97.23 million	1.46	-$150,000.00	$0.50	3.92

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

About Lundin Mining

LUNDIN MINING CORPORATION is a rapidly growing, diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland. The Company currently has six mines in operation producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes the world class Tenke Fungurume copper cobalt project in the Democratic Republic of Congo and the Ozernoe zinc project in Russia. The Company holds an extensive exploration portfolio and interests in international mining and exploration ventures.

About Jaguar Mining

Jaguar Mining, Inc. engages in the acquisition, exploration, development and operation of gold producing properties in Brazil. Its mining operations include Turmalina, Paciência and Caeté. The firm is also developing the Grurupi Project and exploring the Iron Quadrangle and Pedra Branca Project. The company was founded by Daniel R. Titcomb in 1984 and is headquartered Toronto, Canada.