Critical Analysis: Lundin Mining (OTCMKTS:LUNMF) vs. Peninsula Energ (OTCMKTS:PENMF)

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

Institutional and Insider Ownership

0.1% of Lundin Mining shares are owned by institutional investors. 0.4% of Lundin Mining shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Lundin Mining has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Peninsula Energ has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Lundin Mining and Peninsula Energ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	3	1	5	3.22
Peninsula Energ	0	0	0	0	0.00

Earnings & Valuation

This table compares Lundin Mining and Peninsula Energ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lundin Mining	$3.42 billion	2.77	-$203.53 million	($0.13)	-85.23
Peninsula Energ	$11.87 million	5.30	-$12.41 million	N/A	N/A

Peninsula Energ has lower revenue, but higher earnings than Lundin Mining.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lundin Mining	-2.34%	6.24%	3.50%
Peninsula Energ	N/A	N/A	N/A

Summary

Lundin Mining beats Peninsula Energ on 9 of the 12 factors compared between the two stocks.

About Lundin Mining

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, Sweden, and Argentina. It primarily produces copper, zinc, gold, nickel, and molybdenum, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex; and 51% interest in the Caserones copper-molybdenum mine located in Chile, as well as owns the copper gold Josemaria project located in Argentina. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.

About Peninsula Energ

Peninsula Energy Limited, together with its subsidiaries, operates as a uranium exploration company in the United States. The company's flagship project is its 100% owned Lance uranium project located in Wyoming. The company was formerly known as Peninsula Minerals Limited and changed its name to Peninsula Energy Limited in November 2010. Peninsula Energy Limited was incorporated in 1993 and is based in Subiaco, Australia.