Critical Comparison: Hudbay Minerals (NYSE:HBM) versus Metals Acquisition (NYSE:MTAL)

Hudbay Minerals (NYSE:HBM) and Metals Acquisition (NYSE:MTAL) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Earnings and Valuation

This table compares Hudbay Minerals and Metals Acquisition”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudbay Minerals	$2.02 billion	1.29	$66.37 million	$0.18	36.64
Metals Acquisition	$340.74 million	2.04	-$144.55 million	N/A	N/A

Hudbay Minerals has higher revenue and earnings than Metals Acquisition.

Profitability

This table compares Hudbay Minerals and Metals Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudbay Minerals	3.80%	7.29%	3.35%
Metals Acquisition	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hudbay Minerals and Metals Acquisition, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudbay Minerals	0	0	4	2	3.33
Metals Acquisition	0	1	1	0	2.50

Hudbay Minerals currently has a consensus price target of $11.17, suggesting a potential upside of 69.32%. Metals Acquisition has a consensus price target of $14.75, suggesting a potential upside of 57.22%. Given Hudbay Minerals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Hudbay Minerals is more favorable than Metals Acquisition.

Institutional & Insider Ownership

57.8% of Hudbay Minerals shares are held by institutional investors. Comparatively, 87.5% of Metals Acquisition shares are held by institutional investors. 0.3% of Hudbay Minerals shares are held by company insiders. Comparatively, 1.8% of Metals Acquisition shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Hudbay Minerals has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Metals Acquisition has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Summary

Hudbay Minerals beats Metals Acquisition on 10 of the 13 factors compared between the two stocks.

About Hudbay Minerals

Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.

About Metals Acquisition

Metals Acquisition Limited focuses on mining and production of copper and silver. It operates the CSA copper mine in Cobar, Australia. The company was incorporated in 2022 and is headquartered in Saint Helier, Jersey.