Compania de Minas Buenaventura SAA (BVN) versus Cleveland-Cliffs (CLF) Financial Review

Compania de Minas Buenaventura SAA (NYSE: BVN) and Cleveland-Cliffs (NYSE:CLF) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Compania de Minas Buenaventura SAA and Cleveland-Cliffs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Compania de Minas Buenaventura SAA 1.41% 1.91% 1.36%
Cleveland-Cliffs 15.12% -40.15% 9.98%

Earnings & Valuation

This table compares Compania de Minas Buenaventura SAA and Cleveland-Cliffs’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Compania de Minas Buenaventura SAA $1.27 billion 2.52 $60.82 million $0.37 34.14
Cleveland-Cliffs $2.33 billion 1.06 $367.00 million $0.50 16.52

Cleveland-Cliffs has higher revenue and earnings than Compania de Minas Buenaventura SAA. Cleveland-Cliffs is trading at a lower price-to-earnings ratio than Compania de Minas Buenaventura SAA, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

52.1% of Compania de Minas Buenaventura SAA shares are owned by institutional investors. Comparatively, 65.0% of Cleveland-Cliffs shares are owned by institutional investors. 19.3% of Compania de Minas Buenaventura SAA shares are owned by company insiders. Comparatively, 0.9% of Cleveland-Cliffs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Compania de Minas Buenaventura SAA has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Cleveland-Cliffs has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Dividends

Compania de Minas Buenaventura SAA pays an annual dividend of $0.06 per share and has a dividend yield of 0.5%. Cleveland-Cliffs does not pay a dividend. Compania de Minas Buenaventura SAA pays out 16.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Compania de Minas Buenaventura SAA and Cleveland-Cliffs, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Compania de Minas Buenaventura SAA 0 2 2 0 2.50
Cleveland-Cliffs 2 5 8 0 2.40

Compania de Minas Buenaventura SAA presently has a consensus target price of $17.30, suggesting a potential upside of 36.98%. Cleveland-Cliffs has a consensus target price of $9.85, suggesting a potential upside of 19.25%. Given Compania de Minas Buenaventura SAA’s stronger consensus rating and higher possible upside, research analysts plainly believe Compania de Minas Buenaventura SAA is more favorable than Cleveland-Cliffs.

Summary

Cleveland-Cliffs beats Compania de Minas Buenaventura SAA on 9 of the 16 factors compared between the two stocks.

About Compania de Minas Buenaventura SAA

Compañía de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru, the United States, Europe, and Asia. The company operates five operating mining units, including Uchucchacua, Orcopampa, Julcani, Mallay, and Tambomayo in Peru; and San Gabriel, a mining unit under development stage. It also owns interests in Colquijirca-Marcapunta, Tantahuatay, La Zanja, Yanacocha, Cerro Verde, Yumpag, Daniela, Ccelloccasa, San Gregorio, and Tambomayo mines, as well as Trapiche, a mining unit at the development stage. In addition, the company produces manganese sulphate, which is used in agriculture and mining industries. Further, it provides geological, engineering, design, and construction consulting services to the mining sector; electrical transmission services; and energy generation services through hydroelectric power plants, as well as processes chemicals. The company was founded in 1953 and is based in Lima, Peru.

About Cleveland-Cliffs

Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States. The company operates four iron ore mines in Michigan and Minnesota; and Koolyanobbing iron ore mining complex located in Western Australia. It sells its products to integrated steel companies and steel producers in the United States and the Asia Pacific. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.

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