Analyzing McEwen Mining (MUX) and Loncor Resources (LONCF)

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McEwen Mining (NYSE:MUX) and Loncor Resources (OTCMKTS:LONCF) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares McEwen Mining and Loncor Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McEwen Mining -17.63% -3.84% -3.29%
Loncor Resources N/A 0.08% 0.08%

Volatility and Risk

McEwen Mining has a beta of -0.99, suggesting that its share price is 199% less volatile than the S&P 500. Comparatively, Loncor Resources has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares McEwen Mining and Loncor Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McEwen Mining $67.72 million 9.61 -$10.63 million ($0.03) -64.33
Loncor Resources N/A N/A -$60,000.00 N/A N/A

Loncor Resources has lower revenue, but higher earnings than McEwen Mining.

Dividends

McEwen Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Loncor Resources does not pay a dividend. McEwen Mining pays out -33.3% of its earnings in the form of a dividend.

Insider and Institutional Ownership

29.7% of McEwen Mining shares are owned by institutional investors. 24.5% of McEwen Mining shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for McEwen Mining and Loncor Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McEwen Mining 0 0 2 0 3.00
Loncor Resources 0 0 0 0 N/A

McEwen Mining presently has a consensus price target of $4.00, indicating a potential upside of 107.25%. Given McEwen Mining’s higher probable upside, equities analysts plainly believe McEwen Mining is more favorable than Loncor Resources.

Summary

McEwen Mining beats Loncor Resources on 7 of the 12 factors compared between the two stocks.

McEwen Mining Company Profile

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. The company owns 100% interests in the El Gallo 1 mine and El Gallo 2 project in the state of Sinaloa, Mexico; and the Black Fox Complex, Buffalo Ankerite, Fuller, Davidson Tisdale, and Black Fox North properties in Canada. It also owns a 61.01% interest in the Paymaster property in Canada; and a 49% interest in the San José mine in the province of Santa Cruz, Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties in Nevada, the United States; and the Los Azules copper project in San Juan, Argentina. Further, it owns interests in other exploration properties located in the United States; and in the province of San Juan, Argentina, as well as in Mexico. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is based in Toronto, Canada.

Loncor Resources Company Profile

Loncor Resources Inc., a gold exploration company, engages in the acquisition, exploration, and development of precious metal projects in the Democratic Republic of the Congo and Canada. The company also explores for platinum deposits. It holds interests in the Ngayu project comprising 12 exploration permits covering an area of approximately 960 square kilometers in the Tshopo Province in the northeast of the Democratic Republic of the Congo; and the North Kivu project, which consists of 47 exploration permits that cover an area of approximately 13,000 square kilometers located in the North Kivu Province in eastern Democratic Republic of the Congo. The company was formerly known as Nevada Bob's International Inc. and changed its name to Loncor Resources Inc. in November 2008. Loncor Resources Inc. is headquartered in Toronto, Canada.

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